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Don’t Buy the Stock Market Dip. These Charts of Small Caps, Semiconductors Explain Why.

1. Nasdaq Composite shows a bearish reversal with a 2% gap down. 2. Russell 2000 ETF breaks below $240, signaling deeper declines ahead. 3. Semiconductor ETF falls 23% below its 52-week high, indicating weakness. 4. Investors are shifting towards defensive sectors like pharma and energy. 5. Major tech stocks like Microsoft and Nvidia are under pressure.

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FAQ

Why Bearish?

The bearish reversals in major indices suggest potential further declines, historically seen during downturns.

How important is it?

Current market trends show significant concern for major indices and tech stocks, likely influencing SPY performance.

Why Short Term?

Recent trends and market reactions indicate immediate bearish sentiment likely affecting SPY shortly.

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