Morgan Stanley Warns Nasdaq 100 May Fall More Than 20% From Peak
- Technicals deteriorate for gauge, with 200-day average in play
- Investor complacency has yet to get washed out in the market
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The tech-led selloff in U.S. equities is likely only halfway done, according to the Morgan Stanley strategist whose warning last month about the top-heavy market now appears prescient.
Down 13% from its Sept. 2 high, the Nasdaq 100 has tumbled below its 50-day average and is underperforming the S&P 500 for the first time in a year. Yet deeper losses may be ahead because the selloff has yet to clear out the positive sentiment that bubbled up in the past few months during its historic rally, according to Mike Wilson, the bank’s chief U.S. equity strategist.