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Tech Stocks Appear To Be Following Year 2000 Waterfall Selling Pattern

ByChris Kimble
Published 02/24/2022, 02:30 PM

Long-Term NASDAQ-S&P 500 Ratio.

Weakness in the technology sector continues to rattle the markets as growth stocks get hit.

Today, we take a look at the relative strength (or lack thereof) of the NASDAQ Composite by looking at its ratio to the S&P 500 Index.

 As most of you are aware, we’ve shared this chart before, giving warning to the bulls, early this month.

So far, what we’ve shared in the past, continues to play out in similar fashion to the 2000 pattern. Whether it’s a repeat or a fractal (rhyme) doesn’t matter.

A pattern is a pattern, and this has been calling for caution since support broke. And selling in tech stocks appears to be picking up. Is a “waterfall” in tech stock playing out? Stay tuned!

Latest comments

most of you probably noticed that elon sold a whole bunch of tesla stock in the last month or so when tesla was at/over 1000. it had fallen into the 700s but recovered to 800 even today. it will continue to fall. elon knew it, i knew it ... you guys werent paying attention. start now.
Well put! Key word is “put”
how many times must i say this? .. stocks are absurdly over valued!! a crash is happening now & will continue for a while. look for 50% corrections from current levels in very near term.
what is over valued? Facebook at pe 14?
 PE: TSLA 163, CRM 111, ... Keep buying mate!
Im personally not buying but I know enough to say that company quality affects the pe. Doesnt mean the selling has stopped but it does mean indiscriminate selling presents excellent buying opportunities in some areas. High quality companies bought during these sell offs are almost a certainty to be higher in the future if you're a long term holder. All you have to do is look at the historical chart of the SP500. Mainly depends on if you're an investor or a trader. As long as you protect your capital then let the rest ride the roller coaster.
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