By Nicholas Santiago on May 7th, 2010 3:26pm Eastern Time
Technology stocks have been one of the leading sectors of the market since Mach 2009. Leading Nasdaq 100 stocks such as Apple Inc (NYSE:AAPL), and Amazon Com Inc (NYSE:AMZN) have lead the index higherthroughout the rally. However, they have been crushed over the past two weeks and lead the decline of this stock market correction..
Apple Inc is now down over 14 percent since making a high on April 26th, 2010. The stock will have near term support on the daily chart at 220.00, 210.00 and 201.00. In a correction or panic sell off as we have seen since yesterday these levels are now in play.
Amazon Inc broke out to new all time highs in 2010 and topped out on April 22nd at a price of 151.09. The stock is now trading at 124.30 which is more than 17 percent off it's recent high. This stock has some near term support on the daily chart at 120.00 and stronger support at 116.00.
When the major indexes are in bullish mode many investors and traders will look to fundamentals such as p/e ratios and book value. However, when panic and sharp corrections set in traders and investors will look to the technical levels. Continue to use caution in this market as things are just starting to heat up. The leading stocks in technology are already speaking to us on the charts.
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