‘Extremely bearish’ chart formation signals the top 7 Big Tech stocks including Apple, Nvidia, and Tesla face elevated risk of a selloff

• An “extremely bearish” pattern has formed on the Magnificent 7 stocks’ combined price chart, fueling fears of a selloff.
• “For what’s worth, the top 7 largest tech stocks are currently staring down from a scary double-top technical formation,” Crescat Capital’s Octavio Costa wrote in a LinkedIn post.
• That’s amplifying concerns that Wall Street’s reliance on a handful of Big Tech stocks may have reached unsustainable levels.

The US stock-market rally of 2023, which defied high interest rates and recession calls, has been led by a surprisingly small clutch of Big Tech names that have come to be known as the Magnificent 7.

The group — made up of Apple, Microsoft, Alphabet, Meta, Amazon, Nvidia, and Tesla — recently accounted for as much as 30% of the S&P 500 index’s entire market capitalization, fueling concerns that investment flows are getting over-concentrated in a narrow segment of the equity universe.