In the past, the stock failed to witness a strong follow-up move after such a gap-up rally and filled the positive gap subsequently with a gradual decline. The key technical indicators tested the overbought zone and in the absence of a follow-up move, they may reverse down.
US market remains tied to tech stocks despite sharp AI sell-off
The US stock market is currently experiencing a significant pullback in technology and AI-related stocks. Investors are concerned that Democratic victories in the midterm elections