Tech Weakness Continues to Drive Market Direction

Despite yesterday’s reprieve, stocks are pushing lower today with Technology stocks leading the way. Over the past few weeks, we have seen tech stocks trending lower, lead by the FAANG stocks – Facebook, Amazon, Apple, Netflix and Google (Alphabet). These stocks have been the darlings of the stock market rally over the past 4 years, but have now rolled over, and are dragging the rest of the tech sector, the Nasdaq Composite, and the broader market lower.

Investors that are long stocks should pay close attention to this developing trend, and should raise cash if they have not already, as stocks look likely to sell-off, with a correction of significant magnitude – 10% to 20% – looking very likely to occur in the short-term.

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