Mega cap tech tracked by the NYSE FANG+ index is getting crushed today and is down 3.2% for its worst single-session since May 10th when it fell 3.6%. One key difference between today and then is the technical damage done from a charting perspective. Today’s drop brings the FANG group below its August 19th low and more importantly below its 200-DMA. That marks the first close below its 200-DMA in 378 trading days. While the index does not have the most extensive history dating back to only to 2014, that makes for the second-longest such streak on record behind one that lasted 573 days ending almost exactly three years ago to the day.
Panning over the largest of the FANG stocks by market cap, most are still above their own 200-DMAs with the exception of Amazon (AMZN). Like the index, each of these names have been breaking down a bit from a technicals standpoint. In the case of Facebook (FB) and Alphabet (GOOGL), long-term uptrends are now broken. In tonight’s Closer, we illustrate the impact that the decline of these stocks have had on the S&P 500. You can read more about the FANG breakdown and more in tonight’s Closer with a two-week Bespoke Institutional trial.