On May 6th, according to The Kobeissi Letter's analysis, two key indicators for US tech stocks hit recent lows: the ratio of US tech stocks relative to global tech stocks dropped to 1.6 points, the lowest in 18 months; the ratio of US tech stocks relative to non-tech sectors fell to 1.5 points, also a new 18-month low.
The decline of these two indicators has exceeded the bear market period of 2022. Year-to-date, the Nasdaq 100 index has fallen approximately twice as much as the S&P 500 (excluding information technology).
