It is still all about the AI hype - all companies want to get in on the AI pie, so AMZN is producing AI chips, GOOG is producing Quantum chips, AVGO will win big in XPU, market just blindedly accepted the story and reponded positively, and they bailed out on the true AI king NVDA. In the past 5 days but all sectors except XLY and XLC (becuse inclusion of amzn/tsla/goog/avgo etc.) are in red, even XLK is red.
At the market close today ADLINE for $NDX also confirmatively and negatively diverged with $NDX following $RUT, $NYA, $SPX, $SPXEW.
I have seen similar setup several times before big sell-off, $NDX is dangeriously high-valued now, they are the most vulnerable, stay away from them. Should big sell-off happens, I see a buy in current oversold value stocks (particularly in the healthcare sector)
