Just a week and a half ago, I told you I was starting to lean bullish on Q2.
The data looked good. Sentiment was at extremes. And the S&P had just given us a strong bounce off that 557 zone — a spot that’s acted like a magnet for months now.
It was a clean setup. One of those “if this, then that” kind of market moments.
But then Friday happened.
If you missed it, the selloff was brutal. SPY opened soft and never found its footing — and the worst part is who led the downside: the MAG 7.
I’m talking about Apple (AAPL), Amazon (AMZN), Google (GOOG), Meta (META), Microsoft (MSFT), Tesla (TSLA), and Nvidia (NVDA) — the same seven mega-cap tech stocks that have carried this market for the last year.
In just three days, the MAG7 ETF dropped 12%.
Let me say that again: 12% in three sessions — from new all-time highs.
That kind of move doesn’t happen in healthy markets. Not from your leaders. And when leadership collapses like that, it forces you to reevaluate everything.
So I did.
And I’m no longer leaning bullish on Q2 — at least not until we see the MAG 7 stabilize.
But it’s not just about one bad day. It’s about what this move tells us:
- Insiders aren’t buying — That’s a red flag. During every other big reversal in recent years, insiders stepped in. They haven’t this time.
- A confused market — The S&P is officially back in No Man’s Land — below major support, above major breakdowns.
- No broad strength — The rotation we were hoping for (into Energy, Utilities, and Staples) is stalling out. Some names are holding up, but we’re not seeing the kind of broad strength you want to bet big on.
Now, could things still turn around?
Of course. If we reclaim $580 on SPY and the MAG7 find their footing, I’ll reassess. That’s trading — you’re supposed to change your mind when the data changes.
But as of right now?
I’m in neutral mode. Tight timeframes. Defined risk. Shorter trades.
And I’m leaning on sectors and names that are still showing strength — like GE, Walmart, gold, and a few others I highlighted in today’s Mapping the Market episode.
That’s what I want you to do, too.
No hero trades right now. No assumptions. Just smart setups in strong stocks — and a whole lot of patience.
📺 I just covered this and more in my FREE bi-weekly Mapping the Market session.
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— Nate Tucci
