The Magnificent Seven, comprised of top tech stocks like Amazon, Apple, and Microsoft, experienced their worst day in over a year, with Tesla breaking its winning streak. Meanwhile, retail investors are holding over $2 trillion in cash on the sidelines. Yahoo Finance's Jared Blikre analyzes these market trends on July 11, highlighting the significant losses in the tech sector and the record high cash reserves. Despite the selling pressure on mega-cap stocks, Blikre remains optimistic about small caps, pointing to the Russell 2000's strong performance as a potential catalyst for market growth. He also discusses the increased earnings support for tech stocks compared to the dot-com era, suggesting that the current market conditions may sustain further upward momentum. Furthermore, with the possibility of cash moving off the sidelines due to lower rates, there may be potential for market revival in the near future.