Stocks Are on The Ledge of A Cliff

The comments below are an edited and abridged synopsis of an article by Phoenix Capital

The stock market is clinging to the ledge of a cliff.

Are on The Ledge of A Cliff - BullionBuzz - Nick's Top Six
The businessman is deep in thought while watching the flying money. (Used clipping mask)

Tech stocks have been trading in a wide range since stocks peaked in November 2021. And they are just barely clinging to the lower line of this range on a weekly basis.

Why is this a big deal? Because if the Nasdaq closes below the lower line of this range on a weekly basis, it opens the door to an unwind of most if not all of the Covid-19 bull market. This would mean a 40%—50% collapse from current levels.

And all of this is happening right as the Fed ends QE and starts raising rates. Meanwhile, the economy is rolling over and the tech-heavy market is barely able to rally.

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