The Nasdaq composite has begun showing clear signs of weakness, according to a strategist who sees trouble ahead for high-flying growth stocks.
The Nasdaq on Thursday posted its largest single-day drop in over two weeks. Larry McDonald, founder of the Bear Traps Report, said cracks beneath the surface of the tech-heavy index are signaling further downside, particularly after a historically strong year for growth stocks and the broader market. Here's why:
Bottom line... McDonald says a bevy of technical and fundamental signs are pointing to trouble ahead for the tech-heavy Nasdaq, and he recommends investors begin moving into value names instead.