Friday's afternoon collapse of the tech sector was unusual to say the least. It was not a broad based sell-off. And while the late afternoon swoon took the Russell and S&P500 off their session highs, they both more than held their own despite the sharp move lower for the Nasdaq. Is this the start of a correction?
On Friday I noted that these pull backs have been of the one and done variety and that we need to see it continue on Monday.
One day does not make a trend and seeing how every dip since the dawn of man has been a great buying opportunity, it's tough to get too excited, or worried, about a one day sell-off.
This morning futures are lower, but not sharply. Nasdaq futures were down over 1% earlier but have recovered some of those losses.
The FED is this week with their meeting starting tomorrow, with a rate hike likely to be announced on Wednesday. Which is not something unexpected.
However the tech sell off on Friday was unexpected. Yet if tech recovers today and goes into positive territory, all will quickly be forgotten. On the flip side, another session with heavy selling could market a turning point and a short to medium term momentum shift. One that could bring prices down across the board. Today will be a key day in determining where the market is going to head over the next few weeks.
Was Friday just a harmless blip on the radar? A chance for the tech sector to reset? Or something more ominous?