The SPY actually isn’t looking too bad, it is still holding over the 8 ema, but big parts of the AI trade are having a nasty unwind today with many small caps down double digits and even larger names like AMD,INTC down 4-5%. Look we’ve been frothy for a while, stuff like OKLO with 0 revenues is down 30% in a week and even with another 90% of downside and it would be overvalued. This market has been ridiculous, look no further than BYND which was under $1 just two days ago and popped over $8 today on nothing but a squeeze, that is the market we’ve been in for a while. Tomorrow we have CPI and ideally bulls would like to see the VIX calm down and things settle because as a whole this really doesn’t look horrible for the overall market, it is just the growth spectrum that’s hit hard.
Look at ARKK specifically, that is a barometer of growth names and it is knifing through the 21 ema right now down 4.5% today. That is a sign that this isn’t time to buy the dip on these growth names until it can be reclaimed.
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