First Nasdaq Stock Flash-Crashes, Now The Nasdaq Index Is Crashing

Tyler Durden's picture

UPDATE: Nasdaq negative year-to-date; Biotechs 3-month lows. AMZN, FB, TWTR, NFLX, P all in Bear market territory

Shortly after 946amET, the stock of The Nasdaq OMX Group suddenly dropped in a mini-flash-crash from from 35.98 to 35.00 in just over 2 seconds on approximately 100,000 shares. As Nanex notes, this is what high-frequency-trading liquidity looks like. But now, an hour or so later, the Nasdaq index and most especialy its Biotech and high-growth names are being crushed. Biotechs are near 3-month lows, Momos are down 16 to 18% since FOMC, and Nasdaq is about to go negative for the year.

As Nanex explains, on April 4, 2014, starting at 9:46:20, the stock of The Nasdaq OMX Group, Inc (Symbol: NDAQ, Market Cap $6.1 Billion) suddenly dropped from 35.98 to 35.00 in just over 2 seconds on approximately 100,000 shares. 500 Trades and 2,600 top of book quotes from 10 exchanges and an unknown number of dark pools participated in the 2.7% price drop. The stock price recovered to $35.77 in just over 1 second on approximately 44,000 shares (200 trades, 1,233 quotes) on 9 exchanges and an unknown number of dark pools.

We call this,  HFT (High Frequency Trading) liquidity.

1. NDAQ Trades color coded by reporting exchange over 27 seconds of time.

And now the index itself is collapsing...

But year to date, things are getting ugly for NASDAQ...

 

As high growth momos are slammed post Yellen...

Leaving them all in bear market territory

AMZN peaked a little earlier...

 

And Biotechs near 3mo lows...

 

Russell 2000 and Nasdaq are now notably in the red for April...