# Which AI layer is cracking first? Week 1
Latent Equity · published Oct 29, 2026 · AI layer tracker
Post: https://x.com/Latent_Equity/status/2115869107509698573

Our read: in this AI selloff, software is the only layer holding up; in every other layer most or all names are below their 50-day.
Software is the only group where every name we track is back above its 50-day average (up from 57% a week earlier, our calc).

Quick key: "above the 200-day" means a stock is trading above its average price of the last ~200 trading days, a rough test of whether its long-term trend is still up. The 50-day is the same idea over a shorter window. RSI is a 0–100 momentum score; below 30 is unusually weak, above 70 unusually strong.

Share of names above the 50-day / above the 200-day / average RSI:
- Software: 100% / 100% / 57.7
- Big spenders: 20% / 40% / 40.8
- Semis: 0% / 50% / 37.7
- Optical: 0% / 43% / 36.7
- Power: 0% / 0% / 37.2
- Servers & storage: 0% / 100% / 36.8
- Neoclouds: 0% / 0% / 32.1 (weakest)

The other big move: big spenders above the 200-day fell from 80% to 40%. Note that $META is right at its 200-day (0.16% under), and $MDB and $ASML are also hairline-close, so small moves can flip these counts.

What would change the read:
- if neoclouds and power get names back above the 50-day while software slips below it, the weakness is rotating, not concentrated in hardware.

We'll update this every week.

General research, the same for every reader. Not investment advice.
Sources: our calc from daily closes, 10/26 vs 10/19.