Technical Analysis: Tech Slump Continues
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Tech stocks remain one of the weaker sectors of the market. Perhaps earnings can provide some relief when reporting season swings into high gear next week, but so far earnings in general are not off to a promising start. The Nasdaq (first chart below) remains well below its 200-day average, while the Dow and S&P (second and third charts) are finding support at those same averages. On the plus side, the Nasdaq held its uptrend off last months lows; that trendline will be at 2114-2115 tomorrow. Below that, 2090-2100 would come back into play. Resistance on the techs is 2125, 2135 and 2150. The Dow has support at 11,066-11,070 and 11,040, and resistance is 11,165 and 11,220-11,230. The S&P has support at 1264, 1259 and 1254, and resistance is 1272-1275 and 1281. Long bond yields (fourth chart) continue to drift lower.