📊 WyckoffSMI — Week In Review

Week Ending February 21, 2026

📌 Demand Defends Support While Energy Leadership Expands

This week saw continued defense of range support in the major indices, accompanied by constructive action in select leadership names — most notably within Energy. While broad market structure remains in a backing-and-filling phase, sector rotation continues to provide important clues regarding institutional sponsorship.

🧭 Index Structure — SPY & QQQ

SPY — Backing Up Within Range

SPY continues to respect its developing re-accumulation structure. The prior decline into the range low was followed by a Jump and BackUp sequence, and recent price action reflects controlled consolidation near the upper half of the trading range.

Notably:

• Technometer reversed sharply from oversold conditions.

• Spread on reactions has contracted.

• Optimism-Pessimism Index is stabilizing rather than deteriorating.

This suggests supply has not regained control.

QQQ — Support Test Holding

QQQ remains slightly more volatile but structurally similar. Recent weakness held near established range support and was followed by a firm rebound. While the prior UT remains overhead resistance, demand continues to defend the lower boundary.

The weekly takeaway:  Growth is not breaking down — it is consolidating.

📈 Leadership Campaign Review

GKOS — Constructive BackUp After Jump

GKOS continues to hold above former resistance following its Jump and Sign of Strength sequence. Recent backing-up action remains orderly, with demand stepping in near support.

Campaign remains intact.

MRK — Markup Channel Developing

MRK continues advancing within a rising channel following accumulation and a clear Jump–BackUp structure. Demand has repeatedly defended pullbacks, and no evidence of distribution is present.

Healthcare remains stable leadership.

NBR — Strength Within Energy Rotation

NBR has transitioned from accumulation into early markup, respecting its rising channel and printing successive higher lows. Energy sponsorship is clearly visible.

🔄 Sector Rotation — Energy Leadership Expanding

The clearest rotational development this week is in XLE.

XLE has:

• Broken decisively above prior range resistance

• Printed a strong Jump with expanding spread

• Maintained upside follow-through

This represents:

Capital rotation into Energy — not broad defensive positioning.

When sector ETFs break out while indices consolidate, it suggests institutional repositioning rather than risk-off behavior.

Energy strength aligns with NBR’s constructive action.

⚖️ Weekly Weight Of Evidence

Bullish Developments

• SPY and QQQ holding range support

• Technometer reversals from oversold

• GKOS and MRK maintaining markup structures

• Clear Energy sector breakout (XLE)

• NBR sponsorship within the sector

Cautionary Factors

• Indices remain below range highs

• QQQ prior UT still overhead

• Broad participation not yet expanding aggressively

🧠 Composite Operator Interpretation

The market does not appear to be distributing.

Instead, it appears to be:

• Consolidating at index level

• Rotating capital at sector level

• Advancing selectively through leadership stocks

This is typical behavior during re-accumulation phases, where sponsorship rotates rather than expands universally.

So long as:

• SPY holds range support

• QQQ avoids range breakdown

• Energy leadership persists

The path of least resistance remains constructive.