The Magnificent 7 Index : A House of Cards

There are exactly 7 stocks holding up the entire US stock market. Those assets include Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. What I’ve done here is created an index chart that enables an Elliott Wave count of all 7 assets combined. The all time high was printed in November 2021, along with the rest of the major stock indexes. Since then, these magnificent 7 have carved out a 5 wave expanding diagonal decline, followed by a 3 wave corrective zigzag that ended in July 2023. This is an incredible 1-2 series to begin a massive decline to an all time low below $170 for an index currently valued around $1800. But let’s not put the cart before the horse and instead look at what’s right in front of us. Since the wave 2 high in July, this house of cards has begun to tumble, printing a smaller degree 1-2 decline that is only the beginning of a much bigger fall described in this post.