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The Breadth Report

Writer: Lester Davids
Lester Davids
Sep 29
3 min read

Disclosure: The commentary below was compiled using an artificial intelligence tool, based on my own inputs/data.


  1. 200-Day SMA Participation Decay: Broader market participation has begun to crack under the weight of resource liquidation, with long-term breadth slipping to 48% of constituents trading above their 200-day Simple Moving Average, shifting the market out of equilibrium into a slight bearish skew.

  2. Short-Term Baseline Contraction: Tactical breadth remains severely suppressed; only 28% of shares hold above their 8-day EMA and 32% above their 21-day EMA, confirming active institutional supply across the daily cycle.

  3. Pristine Bullish Moving Average Alignment: An elite defensive cohort maintains an immaculate moving average hierarchy (8-day > 21-day > 75-day > 200-day), spearheaded by SHP, BOX, OMN, PMR, SOL, VKE, and ATT.

  4. Severe Multi-Timeframe Structural Breakdowns: Full moving average stack inversion persists in chronically depressed counters: WHL, TFG, TRU, PPH, WBC, KIO, ARI, EXX, BLU, and ISO.

  5. Retail Sector Structural Schism: Food/staple distributors (SHP, BOX, PMR) trade near all-time highs above all moving averages. Discretionary retail (WHL, TFG, TRU) remains pinned to multi-year lows.

  6. Precious Metals (Gold) Trend-Defense Failure: The primary gold miners (ANG, GFI, HAR) failed their dynamic intermediate support tests, decisively surrendering their 200-day SMAs on heavy volume and invalidating their short-to-medium term bullish moving average alignments.

  7. PGM Complex Moving Average Capitulation: The PGM basket (IMP, NPH, SSW) has suffered total breadth breakdown, slicing further below their 50-week EMAs. Only THA has managed to preserve structural support near its 200-day moving average.

  8. Banking Sector Bifurcation at the 200-Day SMA: NED remains comfortably above its rising 200-day SMA. CPI and FSR are actively testing their 200-day baselines, while SBK (30,139 ZAC) has broken below its 200-day and rests entirely on its 50-week EMA.

  9. Extreme Technical Fair Value (TFV) Discounts: Chronic distribution has created extreme downward dislocations from 6-MA blended fair values: ISO (−31.50%), GFI (−24.78%), ANG (−19.59%), ARI (−18.98%), IMP (−16.86%), SSW (−16.97%), and WHL (−16.17%).

  10. Extreme Technical Fair Value (TFV) Premiums: Trend acceleration has pushed a select cohort into elevated valuation expansion: ACS (+106.78%), MKR (+64.81%), SDO (+33.28%), SOL (+26.48%), and OMN (+24.89%).

  11. Diversified Mining Health: Global multi-commodity majors (AGL, BHG, S32, GLN) support resource index breadth by maintaining structural health above their rising 200-day SMAs and 50-week EMAs.

  12. Bulk Commodity and Ferrous Liquidation: Domestic ferrous extractors (KIO, ARI, EXX) trade at average discounts of over 15% to their 200-day SMAs, failing to generate organic accumulation.

  13. Real Estate Investment Trusts (REITs) Outperformance: Listed property remains the strongest thematic segment, with ATT, EQU, FFB, FTB, HYP, and VKE trading with positive moving average slopes above their 200-day and 50-week baselines.

  14. Offshore Property Drag: Foreign-exposed property constituents (PHP, SRE, HMN) reflect deteriorating breadth, trading below key medium-term moving averages.

  15. Telecommunications Range Trapping: MTN and VOD are oscillating directly around their 200-day SMAs, acting as structural index ballasts with neutral moving average slopes.

  16. Industrial and Packaging Divergence: Process industries reflect dispersion; MNP and SAP are struggling beneath their 21-day EMAs, while chemical peers SOL and OMN trade in distinct secular uptrends.

  17. New 52-Week High Participation Rate: Only 5.8% of the universe is actively trading within 2% of their 52-week highs (SHP, PMR, BOX, MKR, OMN, SOL).

  18. New 52-Week Low Proximity Rate: Approximately 18.5% of the universe is trading within 3% of their 52-week lows, confirming downside distribution breadth heavily outweighs upside breakouts.

  19. 50-Week EMA Structural Line in the Sand: Key market heavyweights including SBK, MTN, FSR, and VAL are simultaneously testing their 50-week EMAs, making this level the critical systemic pivot.

  20. Weekly Moving Average Compression: Across non-trending industrial and financial counters, the distance between the 21-day EMA and the 75-day EMA has narrowed to within 1.5%, signaling late-stage volatility compression.


Lester Davids

Senior Investment Analyst: Unum Capital

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