As it always does, the selloff today ended not long after the market opened – – indeed, just twenty minutes into the cash market. The good people in Washington, D.C. once again did their duty and bid prices back up. Some sectors, particularly those tech-related, have been sold off quite hard and are prone to a more meaningful bounce. You’ve got such disasters as Peloton………..
……….and Tesla. This one in particular lost over 25%of its entire value in just a few weeks. My point is that, yes, it might rally back to its horizontal, but I think the damage is done, and there’s much more droopage to come.
This is expressed succinctly by the NASDAQ ETF itself, symbol QQQ. The uptrend has quite plainly been broken, and now we can watch those trendlines as levels of resistance as opposed to support.