More warning signs for the tech sector

 

A record tech divergence at record highs

Key points: As the Nasdaq 100 rises to record highs, fewer stocks are in uptrends, and more are hitting fresh lows This is evident across time frames to a level that has never been seen Under similar circumstances, the Nasdaq 100 rarely, if ever, escaped weakness over the medium-term

Technology reaches one of the most overbought conditions in history Key points Momentum in Technology has pushed the sector significantly above a short and long-term average Similar overbought conditions preceded an unfavorable outlook for Technology over the subsequent month A semiconductor index closed 60% above its 200-day average, a milestone achieved only a few other times  The previous instance occurred in September 2020, leading to a 12% decline over the following two months.    by SentimenTrader