Tech stock did very well in the COVID-19 induced lockdowns as the global trend towards digitalisation was accelerated.
So one of the first warning signs to be looking at, if we are to see a general correction in global equity markets, is any falls in the Nasdaq. Last week the Nasdaq found support midweek as panic falls were stopped at the key daily trend line marked below.
This level is now a key one for defining risk. Stay above and the equity gains can continue. Fall below and watch out for further falls. Either way tech is worth looking at to signal future prices more generally in the equity space.