Tech Tanks and the Flight to Safety Is On

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]PGlmcmFtZSB3aWR0aD0iNjQwIiBoZWlnaHQ9IjM2MCIgc3JjPSJodHRwczovL3d3dy55b3V0dWJlLW5vY29va2llLmNvbS9lbWJlZC80bThhdHJBYTlZZz9zaT1rSkNRcTMwVXItOUMtREVxIiB0aXRsZT0iWW91VHViZSB2aWRlbyBwbGF5ZXIiIGZyYW1lYm9yZGVyPSIwIiBhbGxvdz0iYWNjZWxlcm9tZXRlcjsgYXV0b3BsYXk7IGNsaXBib2FyZC13cml0ZTsgZW5jcnlwdGVkLW1lZGlhOyBneXJvc2NvcGU7IHBpY3R1cmUtaW4tcGljdHVyZTsgd2ViLXNoYXJlIiByZWZlcnJlcnBvbGljeT0ic3RyaWN0LW9yaWdpbi13aGVuLWNyb3NzLW9yaWdpbiIgYWxsb3dmdWxsc2NyZWVuPSIiPjwvaWZyYW1lPg==[/video_player]

The Magnificent Seven oftentime market leaders were, collectively, down more than 1% by midday. The broader NASDAQ-100, around 55% of which is tech, was off around 0.06% over the same timeframe.

That doesn’t sound like much, because it really isn’t, but the selling is important because it’s a sign of the times: The appetite for risk is drying up, and capital is increasingly making a classic “flight to safety.”

You can really see this happening in the S&P 500 and NASDAQ futures, ES and NQ, respectively.

I’m going to pull up my charts for both of those contracts to give us a sense of this from a technical perspective – very important.

We’ll also look at how this is playing out in specific sectors we’ve been looking at lately, like utilities and healthcare, to name just two.

Let’s get started…

More from TheoTrade

The Short Squeeze Setup Traders Are Watching

Where Billions Go When Bonds Bleed

SPY’s 14% Run Left The Average Stock Behind, So I’m Trading The Gap

The Oil Trade That Risks $148 To Make $352

What Freed Utilities to Jump 2.5%

Why I Check The Dollar Before Shorting


Most Recent

The Short Squeeze Setup Traders Are Watching
Where Billions Go When Bonds Bleed
SPY’s 14% Run Left The Average Stock Behind, So I’m Trading The Gap
The Oil Trade That Risks $148 To Make $352
What Freed Utilities to Jump 2.5%

Get educational market insights sent right to your inbox.

As Seen In