Tech is the Culprit

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Today was another massacre for risk assets.

All 11 sectors got crushed.

VIX ripped past 45.

Copper had its worst day since October 2008.

Nothing was safe out there.

And if you're looking for the main culprit, it's Tech.

Tech has been leading this move lower. 

The warning signs were there for weeks. 

Back in January, I highlighted the implications of Technology and Semiconductors rolling over on a relative basis. I called it the most important chart for 2025.

Now, we’re seeing exactly why.

The absolute trend is now breaking down.

Just look at XLK vs. SPY overlaid with the S&P.

This ratio peaked last summer while the rest of the market kept climbing. 

That divergence was the tell. 

Since then, Tech has been in freefall, and now the damage is spilling over everywhere.

When leaders falter, the rest eventually follows.

This is no longer a sector issue—it’s a market problem.

If you’re looking for a way to stay ahead in a market that moves fast in both directions, the Breakout Multiplier strategy might be a good fit.

Steve just unlocked an original trade idea post, so you can see exactly how we did it last week. Click here to check it out.

Let me know what you think!

Have a good weekend.

Alfonso