Jeremy Grantham: The End of the AI Bubble Is Approaching

Jeremy Grantham's warning that the AI bubble is nearing its end could create additional selling pressure for the already technically weak S&P 500 (SPX). Although the RSI at 35.86 is approaching oversold territory, the price remaining below the 20-day moving average (7524) and the MACD staying below its signal line keep the short-term outlook negative. The 0.04% decline over the past 24 hours confirms weak momentum. However, since Grantham's past bubble warnings have not always been timely, a continuation of the current weakness is more likely than an extreme sell-off.

Jeremy Grantham's warning that the AI bubble is nearing its end could create short-term selling pressure, particularly for the tech-heavy NDX index. Technically, the index is trading below its 20-day moving average (30,212) and the RSI at 40 indicates weak momentum. The MACD remains below the signal line, confirming a bearish trend. However, the index is holding above its 50-day moving average (29,563) and posted a slight positive close in the last 24 hours, suggesting the decline may be limited. In the short term, the 29,500-29,600 zone should be monitored as critical support.

Jeremy Grantham's statement that the AI bubble is approaching its end reflects a negative outlook on technology stocks. Despite the QQQ index rising over 0.1% in the last 24 hours, its RSI14 remains below 40. This could increase the likelihood of a short-term correction. However, the difference between the MACD and MACD signal lines is still positive, suggesting that a short-term rally may continue. Additionally, the SMA20 and SMA50 values remain above the QQQ price, potentially providing some support. Nevertheless, due to the negative impact of the news headline, the probability of a short-term decline appears higher.