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.
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.
