Just two days ago -- on Monday, May 2 -- tech stocks did something they haven't done since 2008 and, before that, 2001.
It's something tech stocks tend to only do during bear markets and recessions -- a massive intraday reversal off a yearly low. You see, the Nasdaq-100 dropped more than 1% on Monday, hitting a new 52-week low. It then reversed course throughout that same day, closing up more than 1% higher.
Ostensibly, that's bullish. It looked at first like tech stocks would collapse. Instead, they rebounded with vigor.
That seems great, but it's historically been an ominous warning sign for stocks.
The Nasdaq-100 has only posted such huge reversals off yearly lows during the early stages of a bear market. This happened four separate times in early 2001, preceding a crash over the next three, six, and 12 months. Again, it happened multiple times in late 2008, just before stocks crashed into 2009.
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