Investors literally had the rug pulled out from underneath them today as big-stock techs and other leading names blew to pieces. This sent the NASDAQ Composite Index down -1.27% in a stark divergence to the Dow Jones Industrials and S&P 500 Indexes, which were mostly helped along by strength in financials.
When a break like this sees leading names bust through near-term support, investors likely find that their stops and trailing stops are hit in short order. Those that sell are naturally and mechanically pushed into cash, while those that hesitate might see their holdings plummet sharply. Good examples of this today would be leaders like Netflix (NFLX) or Nvidia (NVDA).
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