FAANG and Tesla selloff resumed after long holidays

Today the American stock market returns to work after a long weekend.

At the same time, the markets are returning to the trends that prevailed at the end of last week. Specifically, there is massive pressure on FAANG and Tesla shares, the names that have led the market rally since March.

Tesla shares are set to open with a 15% drop from Friday’s levels and a loss of more than 30% from their peak, formally entering the bear market. Apple, remaining above $110 (-20% from high $137.59), is clinging to the bull market territory.

Nasdaq 100 has meanwhile dropped to 11,100. The 50-day average fall below 11,100 in February heralded an even bigger sale. The failure at this level historically triggers a kind of knee jerk response, which can be either short term or extended for several weeks.

The FxPro Analyst Team