March 11, 2022, 11:18 am EST
Breakdown of the Mega Technology
Breakdown of the Mega Technology stocks (FB, TSLA, AAPL, AMZN, GOOGL, NVDA) indicates the direction of the stock markets. They led the way up in the past. But, this time they are leading the way to the downside.
In fact, the market breadth already top-out about a year ago (February 2021) when 90% of stocks were above their long-term trending line, 200 day-moving-average. While individual stocks became weaker one by one, the stock market kept making historical new highs until the beginning of 2022. The main reason is because of these heavyweight technology stocks where their strong performance covered the weakness of the entire markets. In other words, these mega-caps painted a shining picture of the troubled markets for the most of time until January 2022.
Now, their parties are above over. It should be easy to see by checking out the featured chart of Meta Flatforms Inc (FB). Tesla (TSLA) -4% broke down 200 day-moving-average today which is another confirmation that their good times are over and bad times are coming.