With the Nasdaq down 2.9% today, it would be the biggest one-day decline for the index since February 2007. Below we highlight a chart of the tech-heavy Nasdaq, and the technical layout does not look good. While the index has moved into extreme oversold territory (2 standard deviations below its 50-day moving average), a classic head and shoulders pattern has formed, which would suggest at least a test of the August lows.
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