Tech Technology stocks hit another speed bump this past Thursday following the reversal day that developed on July 13th. That’s two technical shots across the bow to pay attention to, folks. The S&P 500 index Technology sector ETF (XLK) has broken below its 15- and 20-day moving averages for the first time since bottoming in March as did leaders such as AAPL and KLAC.

The steady uptrend from the March lows is showing evidence of changing and investors should be pay close attention to the technical reactions in the market in the coming weeks. If you remember, last week my note contrasted well advanced growth stocks with lagging value and cyclical stocks.

Technology pullbacks testing support

So now what? In the very short-term, many of these leading technology stocks are already bouncing up from trading support near their respective rising 50-day moving averages. This raises the question of whether the correction is over or whether there is more downside risk.

I recommend stepping back from the short-term, daily charts to review the intermediate-term backdrop through weekly charts. I find the weekly charts important for a multi-quarter perspective. The three technical points I view to be important are: First, the Nasdaq’s price and relative performance uptrends...

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