The technology sector is a vibrant and important cog in today’s economy and stock market.
Tech represents both growth and leadership in global equities and has been under pressure due to rising interest rates.
Today’s chart highlights this bearish development quite well. Below is a “weekly” chart of the Equal Weight Nasdaq 100 ETF (QQEW). As you can see tech has traded within a 13 year rising price channel marked by each (1). Price was bumping up against the top of that channel before turning lower last year at (2).
It’s paid to buy tech here….Will it be different this time?
A short-term downtrend channel then formed as the 2022 bear market took shape. And just recently, QQEW tested the bottom of the long-term rising channel at (3). This area is VERY important and represents triple price support.
It would be bullish if price continues to bounce from here… and bearish if price breaks down below triple support. In my humble opinion, it would be good to keep an eye on QQEW. Stay tuned!