an "elephant toss" is always possible, I suppose, but the stock market- Nasdaq in particular- seems to have answered the question pretty quickly this morning. Comp and 100 look to be sustaining the break of a big head and shoulders.
$Ts ran off to hide in the big techs and it was very profitable indeed. But as a group they quit going up a few months ago and now it looks like the position is just too enormous for everybody to get out at the same time. Old story.
Money so rotating to more defensive areas, which is holding the broader market up some. But the thing just appears to be too big for it to be accomplished smoothly.
Interest rates at 3X the level that propelled these valuations are a problem.
Doesn’t get much more textbook.
Clear break of the neckline, followed by what looks like a failed retest.’
Gap down around 11k as the target?
Around 11800 is neckline measurement.