We had carnage spread across the board to end the week in equities with technology names getting clubbed especially hard and the biotechnology sector continuing its slide. In fact the Nasdaq Biotech ETF (IBB) was down a whopping 5% at one point.
The NASDAQ composite (^IXIC) traded almost 3% lower with Amazon.com (AMZN), Facebook (FB) and Netflix (NFLX) among others all down sharply. Recall that it’s been only two days since the S&P 500 (^GSPC) closed at a new all-time high, although things can shift quickly, especially to the downside and as the old saying goes, “the market takes the stairs up and the elevator down.”
Stifel Nicolaus’s David Lutz notes that today marks the first jobs number Friday in the past year in which the market closed lower but whether that might represent a sign post remains to be seen. We haven’t seen this big of a selloff in the NASDAQ since 2012, and there are some hints that this might be a capitulation moment. Indeed, the big question now is whether this type of relentless selling is indicative of a wash out or if it might be the beginning of something more ominous.
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