62% of S&P 500 Is Glowing Green - 3 Trades To Catch The Wave - Chevron (NYSE:CVX)

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 XOM (up over 5% in the past month alone) and Chevron Corn 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.

2. Target Defensive Sector Breakouts

Not all sectors have joined the party yet. Utilities, as tracked by the Utilities Select Sector SPDR Fund XLU and consumer staples, as tracked by the Consumer Staples Select Sector SPDR Fund 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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