It seems like longer ago now, but it was just on Monday that everyone was focused on the big 4% rally in China and how that could have marked the bottom indicating some stability for the global financial markets. As we noted at the time, big up moves typically occur in weak overall market environments, and sure enough, the next day, Chinese equities gave up more than half of Monday’s gain and global markets continued to sink

Yesterday, it was our turn to rally, but before the closing trades had even settled and before anyone even had the chance to ask if that move marked a low, Amazon (AMZN), Alphabet (GOOGL), and some other high profile tech stocks issued poor earnings reports sending the QQQs sharply lower. As things currently stand now, QQQ is set to open lower than Wednesday’s close, erasing all of Thursday’s gains! Just plain brutal.

With AMZN trading down over 9%, it is set to have a massive negative impact on the Nasdaq 100 this morning. Of the QQQ’s indicated decline of 3.66% at the open, 28% of the entire drop is due to AMZN. As shown in the table below, never in the stock’s history has it had such a large one-day negative impact on the performance of the Nasdaq 100. When you add in the fact that Alphabet (GOOGL) is trading down over 5%, these two stocks are accounting for about 40% of the Nasdaq 100’s entire decline today.