NDW Morning Pulse - July 17, 2026

• Thursday was an extremely positive breadth day. Despite the S&P 500 ([SPX]) falling 0.51%, the equal weight S&P 500 ([SPXEWI]) rose 1%. That’s just the 3rd time in the last five years the equal weight index has beaten cap weight index by such a wide margin.
• The market was dragged down by the technology sector, with the Technology Select Sector SPDR ETF ([XLK]) falling 2.24%. The sector is in correction territory with it 10% off ATHs but still holds a favorable fund score of 4.83.
• Memory chips were previously an area of extreme strength but have led the way to the downside over the past month. The Roundhill Memory ETF ([DRAM]) fell a further 8.82% and is now more than 35% off ATHs as companies like Micron ([MU]) pullback.
• Small caps have quietly been one of the best performing groups recently, especially small cap value stocks. The iShares Russell 2000 Value ETF ([IWN]) rose 1.31% on Thursday, bringing its one-month return to 3.7%, which is 3.4% higher than the S&P 500.
• Among small cap value stocks, regional banks have been leading the way to the upside. The SPDR S&P Regional Banking ETF ([KRE]) rose 2.82% yesterday, moving to its fourth consecutive buy signal while holding an extremely strong 5.55 fund score.