Notice the technology came late to this rally. It spent 2004 - 2006 consolidation in a trading range. However, it made up for lost time after it broke out of this range in 2006 with a strong rally that peaked at the end of 2007. However, the sector has since fallen 20% and is back to early 2006 levels.
The yearly chart shows the index formed a triangle top in late 2007 but has since fallen. Also note that prices are currently in a downward sloping channel.
On the SMA (3 month) chart, notice the following:
-- Prices are below the 200 day SMA by about 12%.
-- The 50 day SMA is heading lower
-- Prices and the SMAs are tightly bunched right now.
-- Prices are in a slightly downward sloping downtrend right now.
1 comment:
I'm an engineer and as such, receive a nice pile of free trade publications every week. Usually with a lot of good meaty design articles, these are the primary vehicle for "targeted advertising" by vendors. (After all, you don't take out an ad on network television to sell SMT capacitors or inductors).
What has hit me over the last year or so is the shrinking size of these publications. One example is a bi-weekly magazine that used to run 200-300 pages a couple of years ago--last week's issue had the page numbers staying in double digits.
This is not a good sign for the US technology sector. It says that our technology activity is failing at the lowest level.
Unless there are significant advances in the alternative energy markets, I'd stay away from tech for the time being.
Post a Comment