The daily candle on the Nasdaq continues to worsen. The index is down 2.6% today and at session lows. It closed the positive opening gap from Friday and is testing the mid-June range highs.
Two thoughts:
1) It's not so bad
The argument here is that yield are flat today and economic data has been negative (bad is good). The bond market is signalling that inflation isn't worsening and that should eventually help interest-rate sensitive stocks bottom.
2) It's month end and quarter end
I don't take any signal from price action at this time of year. It's more about window dressing, flows and rebalancing than fundamentals. Granted, tech is busting but it might not be busting today.
At the end of the day though, price action is the only thing that matters and the selling today has been relentless after what had been a good start.
