Tech continues to catch my attention at this phase, with the QQQ and SMH as my gauges. The state of the QQQ has been known to reflect the state of the high growing tech stocks, the QQQ is also the NASDAQ ETF, while the SMH reflects the Semiconductors industry both have been declining in recent times with the QQQ lagging behind the SPY (S&P500 ETF), IWM (Russells 2000 ETF) and DIA (Dow 30 ETF).
This decline has mostly been influenced by stock like FB, PCLN, APPL and GOOG. FB looks like it basing and consolidating after the battering it took, while PCLN looks like it formed a double bottom and GOOG looks like it has held support at $670. These 3 stocks look like they have withered the storm and if they can hold at these levels, they could eventually head higher. It is still too early to make predictions for AAPL as it just held the 200 SMA and also held at the declining channel support. Should AAPL bottom out here, the sector could head higher fast.
Other key stocks to look at in the sector include RIMM which I already discussed earlier, INTC which continues to fall while showing no signs of a bottom, IBM which continues to range in a huge base between $182.00 - $211.00 and MSFT which has failed to close below support at $28.30, if MSFT can hold here in the coming days then that should be positive.
The QQQ lagging and diverging behind the SPY, IWM and DIA could be seen as an opportunity to buy as long as these stocks continue to hold above their respective levels and head higher. Furthermore, if they fail to head higher they could drag the entire market down. Keeping an eye on these stocks will give you an indication of where the market wants to head to next.
This decline has mostly been influenced by stock like FB, PCLN, APPL and GOOG. FB looks like it basing and consolidating after the battering it took, while PCLN looks like it formed a double bottom and GOOG looks like it has held support at $670. These 3 stocks look like they have withered the storm and if they can hold at these levels, they could eventually head higher. It is still too early to make predictions for AAPL as it just held the 200 SMA and also held at the declining channel support. Should AAPL bottom out here, the sector could head higher fast.
Other key stocks to look at in the sector include RIMM which I already discussed earlier, INTC which continues to fall while showing no signs of a bottom, IBM which continues to range in a huge base between $182.00 - $211.00 and MSFT which has failed to close below support at $28.30, if MSFT can hold here in the coming days then that should be positive.
The QQQ lagging and diverging behind the SPY, IWM and DIA could be seen as an opportunity to buy as long as these stocks continue to hold above their respective levels and head higher. Furthermore, if they fail to head higher they could drag the entire market down. Keeping an eye on these stocks will give you an indication of where the market wants to head to next.