Investing Update: Concerning Data Emerges
What I'm buying, selling & watching
All three major indices finished lower for the week.
The Nasdaq fell 3%, marking its worst week since April. High-flying technology and AI-related stocks came under pressure as concerns grew that valuations had run ahead of fundamentals, leading to a meaningful drop in the tech sector.
For the year, the S&P 500 is up 14.4%, the Nasdaq 19.1%, and the Dow 10.4%.
Market Recap
Weekly Heat Map Of Stocks
It was the worst week for the Magnificent 7 since April. It finished the week down 3.4%.
Sector rotation continues to play out, with tech logging its worst week since April. Even with a down week, 7 sectors finished up on the week. So far, this looks more like money moving around the market than a true bull market breakdown.
Dow Performance YTD
So Far In 25
Concerning Data Emerges
For the past several months, the market has been on a smooth road — it’s mostly just gone up.
The data and charts I’ve been sharing have largely leaned bullish. There haven’t been many bearish signals showing up. Believe me, I’ve looked. Things almost felt too good, so I kept watching even closer.
Now, some concerning data has started to emerge.