“Buy the Dip” May Stop Working...  Is a 20% Crash Coming Next? w/ Chris Vermeulen

The S&P 500 is currently "still rising" with price above the 20, 50, and 150-day moving averages. Vermeulen states, "We're still long... until proven wrong." However, the S&P 500 typically follows the Nasdaq. With the Nasdaq already in a downtrend and a "20% crash" predicted due to an economic reset, the S&P is the last domino standing. The trade is to wait for the S&P to break its trendline (like the Nasdaq did) to confirm the "Stage 4 decline." WATCH. Remain Long only as long as the uptrend holds, but prepare to exit or flip Short immediately upon a trend break, as a "precipitous fall" is expected. Selling too early while the "rising tide" is still technically intact.

The "MAGS" ETF (Magnificent 7) has explicitly "broken this support level... to the downside with strong volume." Similarly, the Nasdaq is now making "lower highs and lower lows," which is the technical definition of a downtrend, and has been rejected at resistance. The "Mag 7" act as the market's heavyweight boxers; where they go, the indices follow. Since the leaders (MAGS) have already broken down, the broader tech index (Nasdaq) is confirming the weakness. This weakness in the leaders signals the "AI bubble" is beginning to unfold, and capital is fleeing the sector. SHORT. The trend in Tech has reversed from up to down. The "Buy the Dip" dynamic is invalid here as the structure has broken. The S&P 500 is still holding up; if the broad market refuses to roll over, tech could see a dead-cat bounce before the drop.