As of market close today, the S&P500 was down almost 4% from its all-time high. The larger drawdown is occurring in the technology sector due to the risks that have been building under the surface.
The NASDAQ is now down 12% from all-time highs, which is almost as much as the pullback earlier this year:
If you have been following the notes that I am putting out, then you know that I track macro liquidity and cross-border flows very closely. If the largest flows in financial markets change, you MUST take notice, or you will get sidelined. No one cares about macro or interest rates until their portfolio is down.
What I want to focus on today is WHAT is driving the selling pressure across equities and WHEN will that selling pressure begin to subside?
TWO DRIVERS:
Right now, there are two very clear drivers putting downward pressure on US equities: