Tech Big Picture

trader88

I have noticed that quite a few traders on their blogs are calling for a bounce here, and then "the big decline".  I just don't see that on the charts - at least yet.

Other than a developing oversold condition, technically I see little on the charts that would bounce the markets forcefully here.  I would observe that the $INDU is leading the $SPX, so if a bounce is to emerge then the Transports and other Dow sectors would probably need to lead.  Cyclicals would certainly need to turn around from their leadership of the market correction.  Overall, the markets may just chop around a bit, since the EU finally decided to simply rollover the Greek debt.  This is not progress, and it is essentially kicking the can down the road - an imminent Euro crisis remains in the future.

I thought it might be good to look at a big picture for technology, before the Monday open.  With companies like GOOG already declining over 24% during the market correction, the tech sector has had an important impact on market declines.  Here are two weekly charts - the NASDAQ and the NASDAQ 100.



What is most interesting to me about these two charts is the lack of recovery from the 2000 market crash by the tech indices over the last 10 years. The markets have had over 10 years to rebuild, lots of new and growing tech companies (like GOOG), and yet the tech charts still show serious damage. This is how bubbles work. They destroy the late-entering capital (much like the capital of late home buyers during housing crisis).

dommy

momotalk

qianshui

temujin

thanks

Ed02

dodofish

hutong123

sandera

greenback

acoust

Masktear

A little bit hard to understand fully. Maybe better summarize your conclusion in pullet points. Still good insight.

vicvic

Billyboy