Monday is a day when you are going to be seeing a whole lot of charts about tech.
Indeed, all anyone is talking about this morning is the tech rout gone global and whether Friday’s FAAMG FUBAR was an isolated event or a sign of things to come.
If you need to get caught up, here are three posts that should help:
- Visualizing The Global Tech Rout In 2 Easy Charts
- SocGen Warns On Tech, Momentum: “When It’s Time To Hit The Door, You Better Move Fast”
- What A “Buzz Kill”: Tech Selloff Goes Global
For those interested in still more visual context, consider the explosion in the difference between Nasdaq implied vol and S&P implied vol across multiple tenors:
And then there’s the sudden spike in the ratio between XLF and XLK (i.e. a reversal of financials’ underperformance versus tech):
And here’s the exodus from XLK on Friday:
Finally, for those who enjoy tarot card reading, here’s the technical picture via BofAML…
Tech takes a timeout near its March 2000 peak. S&P 500 Technology nearly tested its March 2000 intra-day high of 988.49 on Friday’s probe to 987.31. This is as good a place as any for a “Tech timeout” or perhaps even a “Tech Tantrum” within the sector’s much larger bullish absolute and relative price trends. The risk is that last week’s bearish outside week down triggers a deeper drawdown below first support at 930 toward the next chart support at 912-888, which is backed up by bullish 26/40-week MAs.