Tech stocks just flashed a ‘sell’ signal ahead of Nvidia’s big earnings report

• The Nasdaq 100 just flashed a technical “sell” signal ahead of Nvidia’s big earnings report, according to Fairlead Strategies. 
• The sell signal reflects a loss of momentum and suggests “several weeks of corrective action, at a minimum,” Fairlead’s Katie Stockton said.
• Stockton highlighted 13,834 as support for the Nasdaq 100, suggesting potential downside of 6%.

Technology stocks are poised for more downside after the Nasdaq 100 index flashed a technical “sell” signal, according to Fairlead Strategies’ Katie Stockton.

In a Monday note, Stockton highlighted that the weekly moving average divergence-convergence, or MACD, indicator for the Nasdaq 100 flashed a “sell” signal on Friday. It’s the first signal from the indicator since it flashed a “buy” signal on November 11.