Though Monday’s action finished off positively for most US Equity indices, the bullish percent for the S&P 500 Index (^BPSPX) reversed into Os to 68% as large cap stocks fell to sell signals. Prior to the reversal, BPSPX had been in Xs since April 11^th, rising from a low of 14% to the recent high mark at 74% reached on May 20^th. Forward returns for the S&P 500 Index following a reversal into Os at these levels are muted in the short to intermediate term but improve 6 months forward.

For those who may be looking to cull through the recent list of S&P 500 stocks that have recently given sell signals, users can utilize the Security Screener under the Securities tab. Once on the Security Screener, select Run Stocks Screen.

Within the blue box at the top of the page select S&P 500 within Universe section. From there, users will locate the Trend Chart section in the grey box on the right-hand side of the page to select Sell under PnF Signal. To specify the timeframe within the specified two weeks, users will put 14 in the right-hand box under the Signal Days while leaving the left-hand box blank. The query filters brought about 46 results. The point today isn’t necessarily to go over all 46 stocks but show how the Screener can be utilized to query for stocks that have given sell (or buy) signals in given timeframe.

While all 46 names queried won’t be covered, examples of recent sell signals given by stocks and how to assess these positions are discussed below. As can be seen, some stocks have given sell signals but are worth continuing to hold or monitor, while some have broke down and are potentially positions that may be addressed.

Iron Mountain (IRM) and Dell Technologies (DELL) have both given sell signals in recent weeks but continue to maintain positive overall technical pictures.

Iron Mountain gave a sell signal in the latter part of May by breaking a double bottom at $95 to initiate a shakeout pattern before reversing into Xs last week’s and rallying to form a triple top with Tuesday’s action. From here, a move above $102 would return the 3 for 5’er to a buy signal.

Meanwhile, Dell reversed into Os and broke a double bottom at $108 to initiate a shakeout pattern. Dell improved to a 3 for 5’er during last week’s trading session and has climbed into the top quintile of the Computers sector matrix. Given the positive technical makeup for Dell, investors could monitor the stock for potential completion of the shakeout pattern, which would occur upon a triple top break at $118.

Conversely, Williams-Sonoma (WSM) and Copart (CPRT) are positions that may be addressed.

After giving a sell signal and shifting into a negative trend in the latter part of May, WSM put in a lower top last week and fell below the middle of the 10-week trading band before reversing back into Xs on 6/3. Though the stock does have support in the upper $140s and in the $130 range, the stock has fallen to a 2 for 5’er and would be a position that could be addressed depending on cost basis.

Copart gave a sell signal during last week’s trading by breaking a spread quadruple bottom at $51, violating support that had been in place since October last year. Along with the breakdown on the trend chart, CPRT has reversed into Os on both the market and peer RS charts in recent weeks, leading the stock to fall to a 3 for 5’er. While the stock still maintains a positive trend on its default chart, the bullish support line is roughly 30% from current prices. With support in the upper $40s being the last line of defense, holders of CPRT may look to address the stock here on the breakdown.

For questions about a particular position that may have recently given sell signals, feel free to contact the analyst team at (804) 320-8511.

Since putting in a bottom in April, technology and growth-oriented sectors have been the best-performing areas of the market. However, they were also the weakest throughout first few months of the year. Most other sector funds outperformed the S&P 500 Index (SPX) from the end of 2024 until the April 7th bottom, but almost all those groups have underperformed since then. There are a few sectors that either outperformed or underperformed the SPX this year leading up to the April bottom and after. Both lists are small, pointing to the high relative strength or weakness of those sectors, which are both important to note. Looking at a universe of US iShares sector funds, the iShares U.S. Aerospace & Defense ETF (ITA), iShares U.S. Industrial ETF (IYJ), and iShares Dow Jones U.S. Financial Service ETF (IYG) were the only three that outperformed the SPX over the periods 12/31/2024 – 4/7/2025 and 4/7/2025 – 6/2/2025. On the other side of the coin, the iShares U.S. Regional Banks ETF (IAT), iShares U.S. Transportation ETF (IYT), iShares U.S. Oil Equipment & Services ETF (IEZ), and iShares U.S. Home Construction ETF (ITB) all underperformed the SPX over both periods pointing to both upside and downside relative weakness.

Out of the three sector funds that outperformed over both periods, the iShares Dow Jones U.S. Financial Service ETF (IYG) is the most actionable at current levels. IYG has a fund score of 5.55, trades on a buy signal, and is trading in normalized territory within its ten-week trading band. The broader financial sector has been a consistent area of strength as it has earned a top three spot in the DALI rankings for over a year. While financials remain strong for the most part, regional banks have been a subgroup to avoid. The iShares U.S. Regional Banks ETF (IAT) was one of the four sector ETFs that has underperformed the S&P 500 from the start of the year until the April bottom and thereafter. So, for those looking for exposure to the financial sector, focus on the larger names.

Perhaps the most interesting sector fund that underperformed over both periods is the iShares U.S. Home Construction ETF (ITB). Homebuilders had been one of the strongest groups in the market over the last few years until the end of 2024 when technical weakness showed up in ITB’s fund score after it dropped below the acceptable 3.0 reading in December. After putting in a bottom in April and briefly returning to a positive trend in early May, ITB began to head back down and moved back into a negative trend later in the month. ITB is also one of two the ETFs in the table above to put together negative performance over both periods, the other being the iShares U.S. Healthcare ETF (IYH). Overall, the few sectors that have either outperformed or underperformed the SPX over both periods observed give us valuable information into the sectors that hold consistent relative strength or weakness. Those that have outperformed consistently are areas to look for new ideas, especially in the individual stock space.

Daily Option Ideas for June 3, 2025