Investors Turn to Bond Market as Tech Stock Selloff Deepens

QQQ fell 6.2% in 24 hours, dropping significantly below its 20-day and 50-day simple moving averages (SMA20 and SMA50); the trend breakdown and rotation into bonds are weakening risk appetite. The 14-day relative strength index (RSI14) at 22.4 places it in oversold territory, which could set the stage for short-term rebound buying, but the MACD is below its signal line and negative, indicating momentum remains downward. News headlines confirm that the selloff in technology stocks is deepening and demand for bonds is rising; this could create additional pressure on QQQ. Nevertheless, given oversold conditions, a volatile session and a short-term rebound after the sharp decline should not be ruled out. The overall bias for the next 1-3 days is downward, but with low-to-moderate confidence.

The NDX has fallen sharply, dropping more than 6% in 24 hours and moving decisively below both its SMA20 and SMA50. With an RSI of 22, it is in oversold territory, while MACD remains in negative territory below its signal line. The news confirms a deepening technology selloff and a rotation into bonds, supporting the deterioration in short-term risk appetite. Oversold conditions could set the stage for relief buying; however, with momentum and trend indicators not yet producing a reversal signal, the 1-3 day outlook remains to the downside. Still, given that volatility is likely to be high at these levels, I am keeping confidence moderate.