Price Action Lab

📺 AI Stocks Are In A Bear Market — But Is That Actually BULLISH? Please ❤️like and 🔁share with fellow growth stock investors @ConnorJBates_ notes that we're still in a mild market correction, but beneath the surface, something very interesting is happening: AI stocks are getting crushed while much of the broader market is showing remarkable strength. * Semiconductors $SMH $SOXX, memory stocks $MU $SNDK, neoclouds $NBIS $IREN, and optical networking companies $AAOI $LITE remain under heavy selling pressure. Our Revere AI 100 dropped another 5.26% on Wednesday after Elections results, highlighting just how brutal this correction has become for AI-related names. * But here's the twist: some of the strongest breakouts are happening in stocks that almost nobody owns! Consumer names, retail, staples, and healthcare continue to outperform. The equal-weight S&P 500 $RSP is showing exceptional relative strength, while the Dow $DIA, mid-caps $MDY, and small-caps $IWM are holding up considerably better than the technology-heavy Nasdaq. This isn't necessarily a market-wide breakdown. It's a massive ROTATION of capital. * And that raises an interesting possibility: what if $RSP starts losing some of its relative strength? That could actually be BULLISH for growth stocks if it signals institutional money rotating back into beaten-down technology and AI names. * The post-election bounce was encouraging, but we're not out of the woods yet. The S&P 500 $SPX / $SPY held the important 7,620 area, never broke 7,500, and reclaimed its 8-day and 21-day moving averages. However, those averages remain in a bearish crossover, and the index is still battling resistance around its 50-day moving average. Meanwhile, $QQQ remains relatively weak. It attempted to reclaim $700 but was rejected, although it continues to hold the critical $686 pivot and its 200-day moving average. Those levels matter. A sustained move above $700 could signal improving momentum, while losing support would increase the risk of another leg lower. * There are encouraging developments elsewhere: The Dow $DIA surged approximately 3% and reclaimed its moving averages. The Russell 2000 $IWM recovered 2,800 and its 50-day moving average. The $VIX dropped sharply, suggesting easing market anxiety. Even within technology sector, hyperscalers like $MSFT and $AMZN showed impressive strength. * Outside equities, $GLD is attempting a wedge breakout, $GDX delivered a constructive close, and $SLV reclaimed its 8-day EMA as precious metals show early signs of bottoming. $IBIT remains one of the better-acting themes, testing its 50-day moving average, while bonds continue recovering $BND $TLT. Treasury yields appear to be forming a bearish flag, potentially setting up another move lower. * With Friday's jobs report approaching and institutions repositioning after the election, the next directional move could be significant. * In summary, AI stocks may be experiencing their own bear market, but the broader market is far healthier than those losses suggest. The question now isn't simply whether AI can recover – it's whether this rotation eventually brings money BACK into growth stocks, potentially fueling the next major rally. Watch the levels. Follow relative strength. Let price confirm the breakout. * Watch this Short video where @ConnorJBates_ breaks it all down in detail 🔽