NEW YORK (TheStreet) -- The Nasdaq had an awful day Thursday. The PowerShares QQQ Trust, Series 1 (QQQ) , the exchange-traded fund that tracks the top 100 stocks in the tech-heavy index, hemorrhaged 3.1%, its worst one-day decline since 2011.
The sharp selloff was a dagger in the heart for many investors who were hoping for a relief rally over the next several weeks.
Although the selloff doesn't appear to be all that bad, it has been a nightmare for many momentum and technology investors.
The S&P 500 is only down 3.2% from the all-time high it made earlier this month, but the Nasdaq Composite index is now off nearly 8% from its all-time highs made in early March.
The Nasdaq, which is where more of these technology and momentum stocks can be found, has had a much tougher ride as of late. This is reflected in both the selloff from the highs and the one-day drop on Thursday, (when the S&P 500 "only" fell 2.1%).
So for those of you saying, "Ah, the selloff hasn't been so bad," try telling that to the momentum investors in biotech or the social media space.
Money has been pouring out of high valuation names -- with Facebook down 18%, Tesla down 18.5%, and Twitter (TWTR) down 38.5% from the highs -- and into low valuation technology stocks such Microsoft (MSFT) and Intel (INTC).
To some degree, this is a warranted move. After all, we've been warned about investing in highflying companies with little or no profit, as the stock prices doubled or tripled throughout 2013.