Tesla's drag was a key talking point yesterday as tech stocks were hammered with the Nasdaq falling near 4%. The chart doesn't paint a pretty picture with the index down by over 20% now since the turn of the year:
The support from the 38.2 retracement level @ 12,552 is the key one to watch this week with the March 2021 low @ 12,397 adding to some additional downside buffer. But break that region and things could get even uglier and in such a scenario, I can't see how that would not spillover and impact broader market sentiment.
For now, things are calmer heading into the US session but the earlier optimism has certainly been snuffed out. Nasdaq futures are up 0.1% after having been up by around 0.8%. S&P 500 futures are up 0.5% but part of the gains owes to value stocks with Dow futures seen up 0.7%.
