Nasdaq is leading a reversal in US equities as it continues to underperform.

There's a growing consensus (realization?) that we were in a monumental tech bubble and holders of mid-cap tech and the frothiest names are using every bounce to lighten up. The market is shifting to more of a focus on valuations and P/Es above multiples of revenue or (god forbid) total addressable market. That presents a major challenge to profitless tech companies, particularly since fund-raising flows are drying up or being done at much-cheaper levels than prior rounds.

The index opened solidly higher today but has been relentlessly sold. It's now threatening to fall into Friday's open gap up.

Nasdaq 10 mins

If this is another interim top in the Nasdaq, it will be well-short of the June bounce high of 12,320.

That said, I'm skeptical of any move around month/quarter end. Hedge funds might be in the process of window dressing as they look to get some ugly performers off their books. That could reverse quickly in Q3 so long as Treasury yields stay within recent ranges.