Bearish Tech Pullback Sparks Breadth Worsening
- VIX surged sharply: from 31.05 on March 27 to 30.61 on March 30, then dropped to 25.25 by March 31—suggesting a sharp but brief volatility spike followed by a rebound in perceived calm (potentially premature).
- Tech sector deterioration was broad: Software weakened >2%, SOX pulled back to test support, and NVIDIA broke below $171—marking a breakdown of prior consolidation.
- Equal-weighted tech ETF (RSPT) fell 1.19% and broke below prior lows— signaling potential for further underperformance.
- Technology weakness outweighed defensive support from Apple (AAPL +0.11%), keeping Tech Hardware slightly held—but not enough to offset sector-wide technical breakdowns.
The market showed increasing signs of weakness as of March 27, with broadening negative breadth and key tech indices breaking support. SPY (representing the broader market) and especially QQQ (reflecting large-cap tech) faced heightened pressure amid declining market internals.
Overall, the confluence of declining breadth, multi-sector weakness, and technical breakouts below support suggests elevated downside risk in the near term, particularly for growth-oriented indices like QQQ.
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Source: AI
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