Traders are the most bearish on Nasdaq 100 futures in 12 years.

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Morgan Stanley Turns Bearish, Sees Tech Plunge Accelerating As Investors Dump Most QQQs In 20 Years

“Fiscal Cliff +Peak Fed = Second Leg of Correction”

Morgan Stanley

Back in March, just after the Fed nationalized the bond market, Morgan Stanley’s Michael Wilson quickly emerged as the biggest cheerleader for risk assets, correctly predicting that stocks would soar on the back of the biggest surge in global fiscal and monetary stimulus which according to BofA estimates is now well over $20 trillion.

Well, the party is now over.

As Wilson writes this morning, over the past few weeks US equity markets have experienced their largest correction since the new bull market began, and according to Morgan Stanley – which still sees the bull market continuing albeit at a slower pace – not only is this “correction due to the rally simply exhausting itself into long-term resistance” but the second leg of the correction has arrived.

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