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However, the Dow and S&P 500 are down by less than 1.0%.
In other words, this is not a wholesale sell-off of the stock market.
This has actually been going on for a few weeks now in what market strategist Ed Yardeni characterized this as an "internal correction" with investors and traders moving from expensively-valued stocks to more cheaply-valued stocks.
"The S&P 500 hit a record intraday high yesterday for the third-straight session, and the 11th time this year," said Rich Barry in the NYSE's MAC Desk Mid-day Update. "However, while high beta/'big momentum' names that trade at higher multiples continue to feel pressure on the downside, value stocks that are lower beta names in sectors like energy, industrial and the utility-space continue to charge higher. So, to summarize, traders/investors are rotating out of the 'more exciting, high-flyer' type names, and are moving the sale proceeds into 'less exciting' lower P/E stocks."
Below is a one-month chart of some of the big tech names. The big, more mature names like Microsoft, Oracle, HP, and even Apple are actually up during this period.
However, Amazon, Facebook, Netflix, Google, and the biotech industry ETF (IBB) are in the red. The Nasdaq composite is down 5% during this period.
"All I'll say is that you'd think investors would've learned from the Tech bubble and housing bubble, but I guess they were just dying to touch the hot stove once again," said Rich Bernstein in a recent email to Business Insider. "Now they're getting burned."
Overall, the market strategist seem to agree this is good news as it brings more balance to stock market valuations.
"This is NOT a bad thing," said Barry. "In fact, it is very healthy for the overall market."
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