Last month, we discussed signs of a potential local top in stocks, including the 5-day bearish divergence in the SPX and the low VIX index, indicating investor complacency. A few weeks later, many tech stocks experienced a strong pullback, including TSLA, PLTR, and MSFT. The only reason I didn't increase my holdings in these stocks is that the SPX index remains strong and hasn't followed these individual stocks' recent declines, despite the sharp spike in the VIX. Usually, I look for a 5%-10% decline in the S&P 500 and NASDAQ to enter new stock trades.
Anyway, our warning proved correct, as
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