The Magnificent Seven are Down to the Final Four

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The S&P 500 was enjoying a bit of a bounceback today after yesterday’s selloff. Good news, right? Well, not so much.

What I was looking at toward the close – and in fact over the past few days – is actually not great news for the market.

We just keep seeing more and more weakness in the tech stocks that have been leading the markets lately. What’s more, when you look “deeper” into the ongoing rally, you see that volatility isn’t moving much at all.

After heavy selling like we saw yesterday, we’d expect volatility to rocket higher. Didn’t really happen.

And after a bounceback like we got today, you’d think the VIX would tank sharply. That didn’t happen.

And that’s really weird. It’s not a great sign. The answer has a lot to do with the (soon-to-be former) Magnificent Seven tech stocks. Let’s get into why…

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