Ominous Chart Pattern Forms for 'Magnificent 7' Stocks, Warning of Potential Selloff for Apple, Microsoft, and Big Tech Giants

An ominous "double top" chart pattern has formed on the Magnificent 7 stocks, signaling elevated risk of a selloff. The Magnificent 7 are Apple, Microsoft, Alphabet, Meta, Amazon, Nvidia, and Tesla.

The Magnificent 7 account for 30% of the S&P 500's market cap, raising concerns about over-concentration in Big Tech.

The combined share price of the Magnificent 7 has surged 82% in 2023, far outpacing the S&P 500's 10% gain.

At the peak, the Magnificent 7's market cap exceeded $11 trillion, nearly 3 times Germany's GDP.

Some say reliance on the Magnificent 7 has reached an unhealthy level, but others remain bullish on Big Tech's earnings potential.