The AI-driven rally has reached a fever pitch, but a look under the hood of three primary ETFs, the iShares Semiconductor ETF (SOXX), the iShares Top 20 U.S. Stocks ETF (TOPT), and the U.S. Digital Infrastructure and Real Estate ETF (IDGT), reveals a market that is fundamentally overextended and structurally vulnerable.
While momentum remains strong, these three ETFs exhibit charts that I simply label as “stretched.” That is, they have moved up so far, so fast, that the laws of gravity are as big a risk as some out-of-left field news event.
