62% of S&P 500 Is Glowing Green - 3 Trades To Catch The Wave

The market's technical health is flashing green: 62% of S&P 500 stocks are trading above their 200-day moving averages, the highest since January. This is a classic sign of broad market strength and often signals a sustained rally is underway.

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But strong breadth doesn't mean every sector or stock is firing equally. Traders who zero in on where momentum lives – and where opportunity hides – can get ahead. Here are three ways to play this market:

1. Ride The Energy Resurgence

Energy stocks are quietly leading this rally. With oil prices bouncing off key support levels, major players like ExxonMobil Corp (NYSE:XOM) (up over 5% in the past month alone) and Chevron Corn (NYSE:CVX) (up over 7% in the past month) are breaking above their 200-day moving averages and showing strong momentum.

Traders can look for breakout plays and momentum swings in these stocks to capture upside in this overlooked sector.

Read Also: Another July, Another S&P 500 Rally – But Something’s Seriously Off This Time

2. Target Defensive Sector Breakouts

Not all sectors have joined the party yet. Utilities, as tracked by the Utilities Select Sector SPDR Fund (NYSE:XLU) and consumer staples, as tracked by the Consumer Staples Select Sector SPDR Fund (NYSE:XLP), are still below their 200-day moving averages but look poised for a breakout if the rally broadens.

These defensive stocks can offer lower volatility ways to participate in a market uptrend, especially if traders prefer less risk.

3. Use Volatility To Your Advantage

The VIX remains elevated near 15–16, meaning the market isn't calm. That's a boon for option traders who can collect premium selling covered calls or cash-secured puts on fundamentally strong stocks. Volatility also creates swing trade setups as stocks fluctuate, providing tactical entry points.

With most S&P 500 stocks above a key long-term trendline, the market is in a bullish technical stance. Traders should focus on sectors with momentum, watch for late bloomers, and embrace volatility to maximize returns.

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