July 15, 2021, 1:03 pm EDT
Technology Weak Again
Technology stocks, represented by Nasdaq100 (ETF: QQQ), are relatively weak again today with -0.9% drop as of now compared to a flat status in Dow Jones. Its strong performance since mid-May or about two-month rally made a narrow uptrend channel as shown.
Semiconductor industry (ETF: SMH) lost near -3% from NVDA, STX, WDC, NXPI, XLNX. AMD etc. Technically, its narrow channel is at risk of breakdown, If it happens, downside momentum could pick-up quickly. It could be a normal profit-taking process if the pullback identifies a support level like 20 or 50 day-moving-average. If not, then we need to pay attention closely to see this is a sign of topping out.