February 2026 Statistics: Defensive Rotation into Quality
February 2026 marked a clear improvement in overall technical conditions. The average Health Score rose to 58.3 (+6.9% vs the previous month), with the percentage of instruments in bullish territory jumping from 53% to 68.5%. The most significant development: US bonds led the rotation, while the financial sector and crypto struggled.
February 2026 was a month of defensive rotation toward quality. Indices held up (77% above the SMA200), but beneath the surface capital shifted toward government and corporate bonds, precious metals, and defensive sectors (Utilities, Telecom).
Macroeconomic Context
February’s rotation had clear roots. US inflation fell to 2.4% (CPI), the lowest level in months, while the labor market delivered positive signals. This gave Treasuries the “green light” for their rally. The 10-year yield declined to 4.09%, signaling that the market is pricing in a more aggressive Fed rate-cut cycle.
The main catalyst was the appointment of Kevin Warsh as the next Federal Reserve Chair. Warsh is perceived as favoring a smaller Fed balance sheet and higher real rates — a regime shift that simultaneously hit gold, silver, equities, and crypto during the first week of February.
US-Iran tensions added a geopolitical premium to oil (+15% YTD) and strengthened the flight to quality toward Treasuries and precious metals. The strong dollar compressed emerging market currencies and the euro.
The crypto crash (-49% since October for Bitcoin) reflects systemic deleveraging: $3 billion in spot ETF redemptions in January, increasing correlation with the struggling tech sector, and the unwinding of the basis trade that had attracted hedge funds. It was Bitcoin’s worst month since June 2022.
Let’s now review the detailed statistics for February based on our scores and monitored technical indicators.
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Report generated by KBMeter Market Pulse System | Data as of 25/02/2026 | This information is for informational purposes only and does not constitute investment advice.
