The Canary In The Coal Mine Composite is sitting at 100, with all eight canaries back above their 200-day moving average, and all are trending higher.
Here’s the chart:
Let's break down what the chart shows:
The top panel displays the S&P 500 as a black line with a red 200-day moving average.
The lower panel shows the Canary In The Coal Mine Composite as a black line.
A green horizontal line is drawn at 61 and labeled the All Clear Zone (bullish stocks), while a red horizontal line is drawn at 45 and labeled the Toxic Warning Zone (bearish stocks).
The Takeaway: The Canary in the Coal Mine Composite has returned to 100.
All eight of my key risk-sensitive groups are above their 200-day moving average, and all those trends are rising.
The test came during the most recent pullback in 2026. The score dropped from 100 into the low 60s. Some of these groups lost momentum or slipped back toward their 200-day moving average. But it stopped at 62.5 and never broke 61.
The majority of the risk-sensitive groups maintained their trends throughout.
Semiconductors and small caps held up, while others pulled back, so the weakness never spread across the group. Transports, biotech, and steel also stayed above their 200-day moving average, and that’s what kept the composite above 61.
The model never left the All Clear Zone. This wasn’t a breakdown. It narrowed for a short period, but it didn’t break.
Then in a short time they turned back up and the score moved straight back to 100 as those groups pushed higher again.
That only happens when both position and trend direction are back in place across all eight.
That is what you want to see during a continuation of a strong bull market!
Now that it’s back at 100. That’s where you decide if you’re leaning into it or fighting it.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
The 2-to-100 scanner runs every week through small-cap names off fresh 52-week highs - before they show up in broader coverage. Rick Sarraf cuts it to one pick. Entry, target, done. $199 for the year.
