November 2025 Market Selloff Analysis: Tech Sector Rebound and Capitulation Signals

On November 21, 2025, FX Empire published an article titled “When Will This Selloff End?” highlighting a broad market selloff with particular pain in technology stocks. The report noted:

• A significant correction in equities after a long bull run
• The Big Money Index (BMI) at 46%—its lowest level since late April—indicating slowing institutional inflows and growing outflows
• November 2025 outflows (1,546) doubling inflows (877)
• Tech giants like Meta (META), Netflix (NFLX), Tesla (TSLA), Amazon (AMZN), Microsoft (MSFT), and NVIDIA (NVDA) trading well below recent peaks
• The author’s view that capitulation (forced selling) is near, signaling a potential near-term bottom [1]

The selloff peaked on November 20, 2025, with the tech-heavy NASDAQ Composite dropping 4.25%—the largest single-day decline in the period analyzed. This was followed by a partial rebound on November 21:

• NASDAQ: +1.08%
• S&P 500: +1.14%
• Dow Jones Industrial Average: +1.30%

The technology sector, which led the selloff, recovered 1.14% on November 21 but underperformed relative to defensive sectors like Healthcare (+2.42%) and Industrials (+1.92%) [0].

The selloff represents a correction after a sustained bull run. The BMI’s 46% reading (per FX Empire) suggests institutional sentiment has weakened significantly, but historical patterns cited in the article indicate such weak patches typically last weeks, not months [1].

1. Directly Impacted Stocks
   : Meta (META), Netflix (NFLX), Tesla (TSLA), Amazon (AMZN), Microsoft (MSFT), NVIDIA (NVDA) [1]
2. Indices
   : NASDAQ Composite (most affected due to tech concentration), S&P500, Dow Jones [0]
3. Sectors
   : Technology (hardest hit), Communication Services (closely tied to tech) [0]

• Capitulation Confirmation
  : The article references a “Forced Capitulation Trigger” (400+ outflows in a session) but does not confirm if this threshold was hit on November21 or later.
• BMI Reliability
  : The BMI index is a proprietary metric from MoneyFlows; independent verification of its predictive power is needed.
• Author Bias
  : The author holds long positions in META, NFLX, TSLA, AMZN, and MSFT, which may influence their bullish near-term outlook [1].

• Rebound Sustainability
  : The November21 rebound could be a temporary recovery or the start of a longer-term upturn—monitor institutional inflows to confirm.
• Defensive vs. Growth
  : Defensive sectors (Healthcare, Industrials) outperformed tech on November21, suggesting investors are shifting to safer assets [0].

• Volatility Risk
  : Users should be aware that while the Nov21 rebound suggests a potential recovery, the significant selloff on Nov20 indicates ongoing market volatility that could lead to further downside if capitulation is not confirmed.
• Tech Sector Vulnerability
  : This development raises concerns about the sustainability of the tech sector’s long bull run, which warrant careful consideration before increasing exposure.

1. Institutional Flow Data
   : Track MoneyFlows’ BMI index and outflow/inflow metrics to confirm capitulation.
2. Fed Policy
   : Related articles mention renewed rate-cut forecasts—changes in monetary policy will impact tech valuations.
3. Tech Earnings
   : Upcoming reports from NVIDIA (NVDA) and Microsoft (MSFT) will provide insights into sector fundamentals.
4. Sector Rotation
   : Watch for sustained shifts from growth to defensive sectors, which could signal prolonged market weakness.