By Andrew Nyquist
Large Cap Tech took a big hit during the August to October market meltdown. After technically forming a broadening top, the floor fell out on the index. But it wasn’t just the Nasdaq 100 (NDX) that suffered, it was all of the market indices. Since then, the large cap tech index has carved out a nice bottom and subsequent rally.
But the big question is whether this rally is ending or about to continue higher. A lot will depend on whether the index can hold 2290 (+/-1%). And further, the ability to hold this level will depend largely on the performance of underlying stocks like Apple (AAPL), Google (GOOG), and Qualcomm (QCOM).
Although the market has been heavy of late, don’t rule out a rally sometime next week. But be sure that your investments prove themselves by holding support or overtaking resistance before you commit additional capital. Below are annotated charts for the Nasdaq 100 and each of the underlying tech stocks mentioned above.
Happy investing.
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No positions in any of the securities mentioned at time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
