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A sharp one-day breadth collapse in tech triggers a rotation into staples, utilities, and software, with chips and megacap names getting cut while KMI and ADBE set up as the next entries. The desk lays out exact levels on QQQ and SPY to watch into tomorrow’s open. Built from WaveFinder scanner data at app.waverider.ai.
Chapter by chapter
Breadth Collapse and the Rotation Call
20-day breadth craters from 32% to 14% as tech leads a sector rotation into defensives, confirmed by the QQQ/IWM split.
Cut Chips, Hold Defense
Trimming MU, GOOG, and QQQ while holding ADBE, ACN, and insurance names; KMI and DKS flagged as new entries, with SPY's $758.79 floor as the key line.
The Swing Factor for Tomorrow
Conflicting 20-day and 40-day breadth signals keep the desk defensive until QQQ reclaims $703; ADBE and KMI setups carry over unchanged.
Key points
20-day breadth fell 18 points in one session (32% to 14%), but 40-day breadth actually rose, signaling rotation rather than a broad breakdown.
Chips and megacap tech (MU, GOOG, QQQ) are being trimmed on AI-spending slowdown fears, while software (ADBE, ACN) and insurance names (AJG, ALL, AON) are being held.
High RVOL in ILS and CLBR is a trap without price follow-through — volume alone isn't a signal.
KMI is the cleanest reversal entry; DKS has the strongest tape on an Outperform initiation.
QQQ's $703 floor and SPY's $758.79 range floor are the levels that decide whether the desk stays defensive or flips offensive.
See QQQ in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See ADBE in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See MU in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See GOOG in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See ACN in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See AJG in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See ALL in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See AON in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See ILS in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See CLBR in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See KMI in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See DKS in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See IWM in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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See RSPT in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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