According to The Kobeissi Letter, the Magnificent 7 Index has decreased by more than 30% from its all-time high on December 18th, indicating a significant downturn in large cap tech stocks. This decline is notable as the S&P 500 has fallen only 7.5% year-to-date, suggesting that investors heavily invested in large cap tech are experiencing greater losses. The current trend positions large cap tech firmly in bear market territory.