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Friday’s session was a broad risk-off slide as the AI-trade correction intensified, led by Intel’s 28.58% post-earnings collapse and a 7.3% drop in the semiconductor index below its 200-day line. Defensives like energy, staples and health care held up, but narrow leadership and collapsing breadth keep the regime Cautious and defensive into next week.
Key points
Breadth plunged: 20-day breadth fell from 90% to 44% in one session, with 92 bulls versus 607 bears.
Intel fell 28.58% on a weak Q4 guide and missing 2027 cashflow projection, dragging Dell, HPQ and Sandisk.
Energy held up: IMO rose 14.42% with WTI crude at $104.
Top watch list setups: CBOE breakout at 334.23 and IMO entry at 138.32 with a tight stop.
If SPY loses 750.36 the thesis shifts toward testing the 200-day average and a cautious bearish downgrade; with the election coming, stay defensive.
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See IMO in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See CBOE in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See QQQ in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See SPY in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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