1. First and foremost, the most obvious sign - the stock price does not go higher even following positive news. We are currently encountering this with Palantir: inclusion into S&P 100, partnership with EYSA, delivery of AI enabled military truck to the US... and many more. If all these positive news could not boost the stock price, the opposite can be true - any trivial negative news can tank the stock price down. This is simply the way the market and momentum works.
2. Absence of bounce back: following an aggressive sell off, the rebound should be quick and obvious. All we saw was a rebounce from 80-90, not even recovering half of its loss.
3. The technical analysis chart shows a formation closely resembling the end of 2021, when all software stocks were destroyed. The stock decline can be vigorous and merciless, driving to a 50% loss from the peak.
Judging from all the phenomena, selling is the right thing to do and ignore any sunk cost. The next support will be at $60, $38. Will come back and join the rally then.
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