As Goldman trader Mike Washington wrote last night, that there was a lot of client focus on the Nasdaq 100 special rebalance which was announced late last week on the back the "magnificent seven" dominance, and which plans to address overconcentration in the index by redistributing the weights (no adds/deletes) on Friday (7/21) after the close, effective prior to open Monday, July 24th.
According to Washington, while supply estimates are marginal vs average trading volumes, "we expect this to create supply in top constituents (MSFT, AAPL, GOOGL, AMZN, NVDA, META, TSLA)... vs demand in the remaining constituents" and sure enough price action today certainly is reflective of institutions pre-trading this event given there was a ~3% spread between MegaCap tech vs S&P 493.
After one of its worst trading days in the past 10 years yesterday, MegaCap Tech is now dramatically underperforming Non Profitable Tech today...
