Mag 7 Concentration Drag Risk
Underperformance of the Mag 7 stocks can drag the entire S&P 500 down.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"However, if the S&P 500 fails to surpass the Gann Line and 7,334.69 and retreats below the May 4 low of 7,174.12, then market expectations would grow for a further decline toward 7,000."
"Mike Wilson, the CIO and chief US equity strategist at Morgan Stanley, said the bank believed stocks were headed for more pain, tumbling as much as 7% before the sell-off ends early next quarter."
"Goldman analysts noted that if the S&P 500 falls below 6,707, an additional $80 billion in equities could be sold over the next month."
"Just as Mag 7 outperformance can lift the S&P 500, underperformance of this group can drag the entire S&P 500 down."