Tech stocks lead by FANG (or FAAMG in some circles) are getting slammed again today as investors take profits and buyers are on strike until valuations come in.

The weakness started on Friday after Goldman Sachs' Rob Boroujerdi said outperformance in the group has "created positioning extremes, factor crowding and difficult-to-decipher risk narratives."

Today, Morgan Stanley strategist Michael Wilson said the correction in tech was "way overdue given the extreme outperformance and positioning in technology shares." He doesn't think the selling is over and expects some follow through this week. But all is not lost for the sector, as they would be surprised if this is the end for technology stocks given the very strong earnings growth we are witnessing.

Meanwhile, Wilson said if we are going to reach 2700 for the S&P500 large cyclical sectors are going to need to perform, so they welcome Friday's action. He also said the fact that the Nasdaq could sell off 2 percent but leave the broader S&P 500 essentially flat is a good sign that money is not leaving equities but simply repositioning. " In our view, that is supportive of our view that this is a correction not the end of the bull market."

Related Stocks:

Apple (NASDAQ: AAPL) -3.6%
Amazon.com (NASDAQ: AMZN) -2.8%
Facebook (NASDAQ: FB) -2.2%
Alphabet (NASDAQ: GOOGL) -2.3%
Microsoft (NASDAQ: MSFT) -2.2%
Netflix, Inc. (NASDAQ: NFLX) -5%
NVIDIA (NASDAQ: NVDA) -3.8%