The FANGs led the Nasdaq on the way up and lead again on the way down. Technology shares were hammered close to 5%.

The Wall Street Journal reports Quickening Retreat From Tech Sinks Market.

U.S. stocks suffered their biggest decline in more than seven months Wednesday, as investors accelerated their retreat from fast-growing technology stocks in favor of shares that have been overlooked.

Major indexes have started the fourth quarter on their weakest footing since the beginning of 2016, and the swift fall has some investors wondering if this is a brief stumble or an overdue reckoning for U.S. stocks after months of outperforming global markets.

The rotation out of tech and other growth stocks—among the most popular trades of the year—to so-called safety stocks, such as utilities companies, was sparked in part by the recent jump in government bond yields and the Federal Reserve’s bid to tighten monetary policy.

But there have been other warnings signals that made investors nervous. Recent data has showed a slowdown in both housing and auto sales, both of which are closely watched indicators of U.S. economic health. Even more concerning: trade tensions between the U.S. and China appear to be worsening.

The result: A simultaneous selling of 2018’s biggest stock-market winners.

Moving Averages

Dow < 50DMA
S&P < 100DMA
Nasdaq < 200DMA
Small Caps < 200DMA
Transports < 200DMA

— zerohedge (@zerohedge) October 10, 2018

Leaders Up, Leaders Down 

Leaders Up - Leaders Down https://t.co/qEELx3nGyJ

— Mike Mish Shedlock (@MishGEA) October 10, 2018

Feed Me 

Feed me Seymour! The S&P 500 is down just 3% from the most obscenely overvalued Fed-engineered yield-seeking speculative peak in the history of the United States, and they're already blaming Fed the Fed for being too tight. pic.twitter.com/MdCE0nkuNI

— John P. Hussman (@hussmanjp) October 10, 2018

Big Names 

Some of the biggest names are getting rekt today:

Square $SQ -8%
Netflix $NFLX -6%
Alibaba $BABA -5%
Shopify $SHOP -8%
Microsoft $MSFT -4%
Amazon $AMZN -4%https://t.co/0jydQWsesr

— StockTwits (@StockTwits) October 10, 2018

It Never Fails

I heard 2 diffferent guests on 2 different biz channels this morning saying one of best long-term reasons to remain bullish was low equity exposure & ample cash on sidelines by households ... not sure where they get their data, but here it is courtesy of my pals at @NDR_Research pic.twitter.com/BdL4QD24IS

— Liz Ann Sonders (@LizAnnSonders) October 10, 2018

There's that cash on the sidelines stupidity once again.