BTIG’s chief market technician Jonathan Krinsky delivered a blunt assessment on July 27: the semiconductor selloff that has rattled tech portfolios for weeks is not done yet. The AI trade, which powered one of the most aggressive rallies in recent memory, still has room to correct further.
The technical case for more pain
Krinsky has been waving red flags since May 2026. His argument is straightforward: semiconductor and AI-related stocks got parabolic, market breadth narrowed dangerously, and the momentum indicators that fueled the rally started fading well before prices caught up.
He estimated a potential 9-10% downside for tech stocks based on overbought conditions and the lack of broad market leadership.
On July 17, Krinsky told clients it was “premature to look for a bottom” in semiconductor stocks. Ten days later, his stance hasn’t softened. The correction, in his view, is still developing.
