Real Selling Hits Tesla and the Nasdaq

Options Expiry taking a look at NQ and SP options on futures

Tesla was hammered today dropping nearly 10% falling $24.96 to $266.30. This shaved about $79Bn off its market cap in a single day:

This dragged the Nasdaq futures down -367 points falling 2.3%. The last time the top 8Mega Caps lost over $250Bn in market cap in a single day, the next day we saw a rally up of $191Bn and $147Bn respectively the prior last two most recent occurrences. This is not expected by Magnelibra to see a bounce tomorrow. We follow some very large language models and they are not indicating a positive environment for the markets over the next 5 months. They have picked up some unique narratives which lead the outputs toward a more cautionary financial environment.

Here is a technical chart of the Nasdaq futures we view this as a major failure on the weekly with this close well below 15950 with just one trading day to go on the week:

Today’s selloff in the Nasdaq has also put the Nasdaq/SP500 spread back below the 0.786 fib retrace level:

With that let’s take a look at the overall settles for the rest of the markets that we follow. US Fixed income gave away a bunch of the recent gains and then some. Silver was hit pretty hard as well and the Dow held up and was positive on the day:

*RBU settled 2.6967 +2.62 on the day and will be corrected with tomorrows update