Despite the very bullish trading action across the broader market: one sector continues to confound active investors: Technology. And more specifically, the Powershares QQQ Nasdaq 100 ETF (NASDAQ:QQQ). Â See chart below.
The sector has been a 2016 leader, but it has yet to break out.
So what’s going on here?
While I expect stocks to continue their bullish ways into week’s end, for stocks, we should see a stall out soon thereafter. I expect this to occur next week as the major stock market indices consolidate some of these gains. And this could further delay the breakout for technology.
While several key stock indices have broken out, the NASDAQ 100 (INDEXNASDAQ:NDX) certainly has not.  It is running into resistance at levels hit back in October. While the QQQ’s still look bullish over the next 6 weeks to rise potentially to 123-124 area, the near-term should prove challenging. The situation is fluid, but I’m looking for a stall out over a 1-2 week period before it moves higher.
Note that you can get more trading ideas and insights from me over at my site, Newton Advisor.  Thanks for reading.
Twitter: Â @MarkNewtonCMT
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
