In swing trading, you need defined risk + probabilities in your favor.

Last few days:

• Choppy market
• Breakouts needed ~4% SL
• High chance of shakeouts & SL hunting
• Setups often stayed valid even after SL hit

Today:

• Post-shakeout, stocks offer lower-risk entries
• SL = today’s low (~2–2.5%)
• Better risk-reward

If SL hits → base likely broken → higher chance of further fall

In other words, the stop-loss aligns with the point where the trade idea is actually invalidated.

📊 Market Breadth Update

Yesterday, I mentioned that Wednesday's sharp selloff looked more like a shakeout within an ongoing uptrend.

Today's breadth confirmed that view.

🟢 60.6% of stocks > 20DMA (↑ from 46.8%)
🟢 64.0% of stocks > 50DMA (↑ from 57.7%)
🟢 57.1% of stocks > 200DMA (↑ from 54.1%)

The key takeaway isn't just that breadth improved - it's how quickly participation returned.

Wednesday's weakness failed to spread across the broader market.

Instead, participation strengthened.

Across short-, intermediate-, and long-term trends, suggesting buyers stepped back in quickly.

As long as Wednesday's lows remain intact, I expect strong setups to continue outperforming.

My focus remains on stocks that are:
✅ Holding above the 21 EMA
✅ Showing relative strength
✅ Breaking out or reversing with strong volume

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📊 Market Breadth Update

Swing Bias: 🟢 Moderately Bullish (7.5/10)

• 57.0% of stocks are trading above their 20DMA
• 63.4% are trading above their 50DMA
• 57.4% remain above their 200DMA

Key takeaway:


• As long as 50DMA breadth stays above 58–60% and 20DMA breadth remains above 50%, the broader trend continues to favor buying quality pullbacks.


• However, with 20DMA breadth still below 50DMA breadth, avoid chasing extended moves. Book partial profits into strength and wait for fresh setups or pullbacks to add exposure.

Market Breadth (20 Jul '26) 📊


🟡 50.1% of stocks above 20DMA
🟢 58.5% above 50DMA
🟢 55.2% above 200DMA

Relationship: 20 < 50 > 200

Lack of Momentum

Wait & Watch Mode for fresh entries

✅ 20DMA breadth reclaiming 60% would signal renewed momentum.

⚠️ A sustained drop in 50DMA breadth below 55-58% would indicate weakness spreading beyond a normal pullback.

📊 Market Breadth Update

🟢 52.8% of stocks above 20DMA (+1.5% DoD)
🟢 60.3% above 50DMA
🟢 57.0% above 200DMA

Relationship: 20 < 50 > 200

Market internals continue to support a bullish consolidation, not broad deterioration. A move in 20DMA breadth above 60% would further strengthen the bullish outlook.