Selloff in Tech Dragged Broad Market Lower

Selloff in Tech Dragged Broad Market Lower

Selloff in Tech Dragged Broad Market Lower

$DIA, $SPY, $QQQ, $VXX

US stocks came under pressure in late-afternoon trade Tuesday, as a selloff in the technology sector weighed on Wall Street equities as the market prepares for the Month/Quarter end Squaring.

A selloff in technology shares drove US equity indexes lower, with losses accelerating late in the session.

Bonds rose on demand for safe-havens, pushing the yield on 10-year Treasuries below 2.8%.

All 10 members of the NYSE FANG+ index, which tracks the FANG block and 6 of its megacap sisters, retreated. Facebook, Amazon, Netflix and Google fell at least 4.5%.

Trade concerns weighed on chipmakers and software companies, with the NAS 100 Index erasing most of Monday’s gain after a report The Trump Administration is considering a crackdown on Chinese investments in technologies the US considers sensitive.

The Chicago Board Options Exchange Volatility Index (VXX) spiked.

Investors have been whipsawed over the past few trading sessions as equities tumbled last week, only to rebound sharply Monday and then resume their selloff Tuesday.

Traders are fearful that there could be a surge in protectionism in the midst of rising borrowing costs and concerns that inflation could be poised to accelerate.

Elsewhere

European stocks posted their biggest gain in 6 weeks. The USD rose as GBP and EUR fell.

In Asia, shares were Green across the board, with Japan’s Topix Index jumping the most since November 2016.

Tuesday, the major US stock market indexes finished at: DJIA -344.89 at 23857.71, NAS Comp -211.73 at 7008.81, S&P 500 -45.93 at 2612.62

Volume: Trade on the NYSE came in at:936-M/shares exchanged

  • NAS Comp +1.5% YTD
  • S&P 500 -2.3% YTD
  • DJIA -3.5% YTD
  • Russell 2000 -1.4% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
27 March 2018 QQQ 158.83 Neutral (-0.16) 158.64 162.12
27 March 2018 DIA 239.5 Bearish (-0.32) 238.32 240.65
27 March 2018 SPY 263.07 Bearish (-0.29) 259.11 264.34

 

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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