That eerie, everywhere-at-once sucking noise you hear when you go outside? That’s the sound of hundreds of billions of dollars in market cap leaving tech stocks.
The selling we’ve seen today has been incredibly concentrated in the tech sector… and therein lies the risk.
On a point-for-point basis, a drop of 541 on the NASDAQ is big, but still shy of that 3% mark. On top of that, we’re looking at a 71-point move to the downside on the S&P 500. Keep it in perspective, though: That’s barely a 1.25% drop.
But, speaking of “eerie,” the S&P 100 advance/decline line is positive at 65/36.
Sounds damn good on the surface, but the thing is, if selling persists, you could see the advance/decline line snap like a twig and then selling starts to spread out in the wider market.
I’ll show you exactly how that works, and a lot more, right now…