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A sudden breadth collapse from 40% to 15% above the 20-day moving average signals a distribution day, flipping bull-bear internals bearish overnight. The desk breaks down what to hold (NET, GOOGL), what to cut (semis, ETN), and the exact levels that decide tomorrow’s open.
Chapter by chapter
Breadth Craters 40% to 15%
Percent above the 20 SMA and 40 SMA both collapse, and bull-bear internals flip from bullish to bearish overnight.
Hold NET, Cut the Semis
NET and GOOGL earn holds on strength while semis, ETN, and even defensive sectors like Utilities get flagged for cutting.
The $334.13 Line in the Sand
NET's key level and the 15% breadth threshold define the bounce-versus-continued-distribution scenarios for tomorrow.
Key points
Breadth cratered from 40% to 15% above the 20 SMA in a single session — a clear distribution day, not noise.
Bull 4% vs Bear 4% flipped from 169-117 bullish to 217-262 bearish overnight.
Hold only proven strength (NET, GOOGL); cut fading semis (AMAT, MU, SMH) and failing names like ETN immediately.
Even defensives like Utilities are cracking, signaling broad structural weakness, not sector-specific rotation.
Default to defense: smaller size, faster exits, no bottom-fishing until breadth confirms a turn above 15%.
See NET in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open NET in WaveFinder.
See GOOGL in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open GOOGL in WaveFinder.
See AMAT in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open AMAT in WaveFinder.
See MU in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open MU in WaveFinder.
See SMH in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open SMH in WaveFinder.
See ETN in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open ETN in WaveFinder.
See EWP in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open EWP in WaveFinder.