Today AI stocks are ripping 10-20%+ after 6 straight days of red in $QQQ and $XLK. Everyone is asking me if this is a real bottom, or a fake-out. This is what we need moving forward: Fake Rally: • One monster green day • Mostly short covering • Volume is okay but not explosive • Only a few AI names leading • Fails to reclaim key moving averages • Then it rolls over and makes new lows True Bottom: • Strong volume that matches or beats the selling days • Follow-through day (big % up on higher volume after day 3-4 of the bounce) • Broad participation across semis, software, cloud… not just 3-4 sectors • Holds the low and starts printing higher lows • Earnings actually proving the AI spend is working (like Microsoft today) • Market structure starts healing One big green day
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