Stock Market Crash! AI Bubble Has Burst As Investors Panic, Buy Signals Emerge

stock market is in crash mode with the S&P dropping over 4% today and the NASDAQ falling over 6% as the AI bubble has collapsed with moves down as much as 70% from the early midyear highs on many stocks. Now, in today's video, I'm going to deep dive into what I am doing with the S&P, how it looks on the chart. We're going to look at these AI stocks. I'm going to tell you where I am buying these and where I'm accumulating them to look for a bounce. And ultimately, we're going to look at gold, oil, and natural gas, as well as Bitcoin to decipher key things. First off, my name is Gareth Solom, chief market strategist here at verifiedinvesting.com. And today was a day for the ages, folks. Just like during the COVID collapse back in 2020, the massive drops, we're seeing it again. This time being led by the AI collapse. Incredible moves. And again, you look at SanDisk. SanDisk over the summer was $2,400 per share. It is now down to 800. That's a 66% decline in less than six months. You look at Micron, you look at STX, WDC, AMD, AAT, you could go on and on. Even names like Nvidia dropping massively just today alone. $2.3 trillion wiped off the face of the planet just from the stock market. Incredible stuff. All right, we're going to get into the charts here. Let's get right to it today. Look at that candle on the S&P down 4.36%. A massive one-day decline. You go back, you're not going to find anything of that magnitude on a one-day basis. you really have to go back to essentially the COVID collapse in 2020, at least percentage-wise. Now, at one point, we were down significantly over here, but it didn't even reach this was down back during the tariff sell-off of 2025. But this one candle, look at the size of that from yesterday's close to today's close, a whopping 4.3 6% drop. Now, like I said, this is sending ripples of fear. All right? If markets were already fearful, then you have a drop like today and we would call it blood in the streets. Right now, again, I've been trained and I've worked this many, many times. When you see this fear, when you see retail, and by the way, retail was one of the most aggressive, if not the most aggressive seller today of stocks, that to me is a buy signal. All right. Again, when you see high quality names like SanDisk down 66% from their recent highs of just months ago and it's trading at a forward PE of four, that's a sign of time to buy, assuming the charts checks out. And we're going to go over all the charts because the charts are checking out. This is incredible, folks. You're going to look back at this. And by the way, I still want to be clear. These stocks could all gap down five or 10% tomorrow, but this is how market bottoms are formed, at least in the AI trade. I still think the stock market can go a lot lower. And the break on the S&P today is a warning sign. If it confirms, we haven't confirmed yet. We're going to know tomorrow if it confirms. If it confirms, then the 8,000 target on the S&P is now off the table. And while we will get bounces, we're now entering a new phase of the market. All right, before I get into everything, just a reminder, guys. Gareth's Top Squad right here on YouTube. $10 a month. You get live Q&A, exclusive videos, epic discounts, swing trade alert posts, all of that right here on my YouTube. And again, it's only $10 a month. All right, back to the charts we go. S&P 500 closing below this level. If you remember, I talked about this level in the previous few videos and said this is the one to watch. Notice it was a high pivot here, high pivot right over here and here. Then we broke out. We came back in. It became support. Support. Now we have broken it. Granted, there's no confirmation yet. We need to see confirmation tomorrow. If we see confirmation tomorrow, it'll signal that our next leg down will eventually take us to 7,000, this former zone of massive support. And honestly, if you have another day like today, you would basically be there as early as tomorrow. Now again, like I said, is it going to happen tomorrow? Are we going to have a massive down move? There's always a chance, but like I said, this sell-off is specifically panic over the AI trade. All right, there's a few other factors in there, but the AI trade people went from being during the summer where, hey, listen, Micron will never cease having massive demand because AI is unstoppable to now that the Democrats took the House and Senate, the the extreme is another data center will never be built ever in the US. And the answer is there's always it's always somewhere in between. And so you think about a pendulum, right? And essentially a pendulum swings one way. That's the extreme greed. Then it swings the other to extreme fear. And really somewhere in the middle is where it should be, right? But that's again the extremes where us as swing traders can find good opportunities. What kind of opportunities are we talking about? Well, take a look at STX today. Look at this drop here. So, first of all, just in the last five trading days, okay, since one week ago, this has dropped 36%. 36%. Okay. Now, if you go back a little bit further and you say, how about one month ago? One month ago, STX down 50%. And if you go back to the summer highs in June, this stock is down 60% just from the June highs. Incredible. Now listen, just like I said, this was the pendulum in ridiculous mode. Now it's getting to ridiculous the other side. But more importantly, look at the chart. This is where good traders, all right? So when you get these type of sell-offs, right, when you get these type of sell-offs, fear is pervasive. It gets into our heads. It pushes us to be scared to do things. But ultimately, I found that if you ignore that and you look at the chart and you start to recognize others emotion, you can get on the right side more often than not. Not all the time. And it doesn't mean that you're hitting the exact bottom because it could easily pierce easily further down. But look at the chart. Look at this zone right here. Right here. Draw this through. And to me, this is epic. Look at these high pivots. This high pivot and this gap fill right here. So, could it go down to 435 tomorrow? 430? Sure. But you're now getting into insanity in terms of oversold. You want to look at the RSI. We can look at the RSI. RSI has now gone down well below 30. It's now trading below 25. Historically, if you look back at this, you can see again the actual major bottom right here before the bull run was below that 30 level as well. And so again, you're starting to see the makings of a final flush out in the near term of the AI stocks. And again, remember the way it always works, institutions are the ones selling in at the highs. Then they continue to sell. Then finally, as things roll over, the retail investor, it gets too painful for the retail investor. The retail investor throws in the towel. Where are they throwing in the towel? You get massive volume spikes. You get liquidations by hedge funds that hedge funds that bet on over leverage. We heard about the uh the Leopold one, right? Well, there's rumors now that he got back in business and now got totally wiped out again as well, which would explain some of the panic selling today as well to the downside. But all of these factors coming back to signal a potential major technical support. We'll watch this in the overnight and see before we go into the S&P or into the SanDisk here. Look at this on the NASDAQ. Down 6 and 12% today. A whopping drop down another, by the way, two points after hours on the QQQ here. One level I'm watching to see if it confirms below. Take this low pivot, the 2025 low pivot connected to the 2026 low pivot. Where are we? We're right into that line. In fact, we close below. That's why we have to see if it confirms tomorrow or can it bounce back above this line. This is an unbelievably important line. If it does go down early in the day, watch. Remember, it's the close that matters. So, we might go down here and test this level tomorrow and then you look for a bounce. This is honestly only another 10 bucks lower. That's only about one and a half% lower. Um, which compared to a 6 and a half% draw down today is nothing overall. So, again, watch these things. I'm going to be watching the cues tomorrow. Does it confirm or does it bounce? S&P does it confirm, does it bounce? Ultimately, the jobs report is tomorrow as well. So, at 8:30 a.m. the jobs report, I'll bring it to you guys live in my show now with my other traders called ProTrader Firepower. So, we'll be looking at that. Then I have my game plan at 9:00 a.m. We'll go over all the trading levels there as well. Going to SanDisk. Look at this breakdown here of this trend line. We don't even need it anymore, but it showed you the breakdown right there. We take that away. But look, little bit of downside is possible here. But look at all this support right here. Marll, look at this right here. We take a look at MRVL. There's huge technical support. Just a tiny bit lower than where we closed today. Look at that level going back to December of 2024. Right down back here. That should act as major support. WDC in massive collapse mode. Same thing. Look at what you're coming into here on the charts right in this lower bed area here. You got this pivot low, this pivot low, and you can even do a Fibonacci retrace. And there's some major fibs coming into play as well. AAT, another one of my favorites down here to start accumulating, coming into some good pivot support. In fact, it tagged this low here and this low today. And that's right where it closed. You do have a small gap fill right here. So, it could go down to about 300, but at 300, it is down from $740. I repeat, $70040 on June 20 uh June 30th. And today's close, a 57% draw down in a matter of less than 6 months. Again, incredible. AMD in freef fall down 17%. Watch this gap fill. That's a little bit lower. There is a gap window here that could could cause a bounce, but if it continues down, this would be a major level. Broadcom, one of the bigger players here. Broadcom also, look at this, guys. And again, as a technician, I'm giddy over these levels. They're just that good. But look at this zone right here. You have these pivot there. That's that former level. So, we can even just bring just bring it down to this low. This gap right here and this pivot gap. And look at what we're into. And then, of course, there's Nvidia. And Nvidia with a big draw down today. Down 9.25%. That's a $5 trillion company. This was 5.5 trillion up here. All right. It has even Nvidia, look at the collapse on Nvidia here. It has gotten walloped to the tune of 25 26% almost. And that's the biggest company or was the biggest company in the world before Apple reclaimed its throne right there. So again, where's where's Nvidia coming into massive support? There's a gap fill right here. I'm watching this level right around 178 on the charts. If it gets through that, you'll have massive support around 167, but we are close to these levels overall. So AI trade is there's no doubt you can't deny it there. The bubble has burst. Anytime anything falls 50 60% 70% off their highs. The bubbles burst. Okay. Um now the question is when does the bounce come in and I've given you the levels. Some of them are at the levels today. Most of them are very close to levels. I started buying pretty pretty aggressively today. I'll do more buying tomorrow if we gap lower. We'll see what happens. But incredible action. All right, before I let you guys go, gold today, little bit of a bounce. One of the calmst trades out there in the overall market. Silver down slightly here. Both coming off of technical support. Oil bounced a little bit. Nothing about today's selloff had anything to do with oil. Oil was getting a technical bounce. It's broken down. There's nothing again, at least as of now, that gets concerning here. Natural gas real quick. Let's take a look at that. And by the way, the VIX, the VIX spike, now we'll look at the VIX in a second. Uh natural gas was slight slightly. Bitcoin which had been at 755 which was the level of support and bounced yesterday to 81 right back to 755. It's got to hold this level guys. If it breaks this level you got a lot of potential downside on this. But look at the VIX before I let you guys go here. This is incredible. Massive move up on the VIX. A 70% move on the VIX all the way to 28 and change. That is telling you fear today. that spike when the VIX goes up 70%. Fear doesn't just inch in, it just leaps in. Incredible stuff. All right. Again, guys, thank you so much for spending some time with me today. Your valuable time. I do appreciate it. I'm always just trying to keep you guys in the loop going over the charts, the levels. Does it break? Does it not break? I'll keep you guys in the loop of what I'm doing here. Thank you again for being fans of Verified Investing. I'll talk to you soon. Take care.