META - The Risk Is Higher In The Market Than It Feels
2024-05-02 07:33:40 ET
Summary
- The last two standing from the Mag 7, Meta and Amazon, appear to be giving the strongest clues that we could see more volatility over the coming weeks to months.
- The level of greed in the market has not only created extreme valuations with stocks, but it created a tight rope that the broad market had to walk.
- If 4950 breaks, we will have full confirmation that a top is in as the next move tests the 4800 – 4600 region.
Our last broad market report entitled “ The Magnificent 7 are Falling Like Dominoes; Only 3 Remain ” warned investors that risk was building in the markets. Specifically, it was discussed that the current market leaders, deemed the indestructible “Magnificent 7,” were putting in tops one leader at a time. First Tesla put in a top, then Apple, Google and Microsoft, all started making lower highs, while the broad market kept trending higher. As we stated in that report, “When these cycle leaders start underperforming, it usually marks the start of a trend change.”...
The Risk Is Higher In The Market Than It Feels