By Nicholas Santiago on May 18th, 2010 12:50pm Eastern Time
The technology sector throughout all of 2009 was a major market leader. However, since the market seemed to find a top around late April it has been the technology stocks that have tumbled. The Powershares QQQ Trust (NASDAQ:QQQQ) which represents the NASDAQ 100 topped out on April 26th, 2010 at $50.65. The QQQQ's are now trading at $46.75 which is a decline of nearly eight percent.
While most traders focus on the major tech names such as Apple Inc (NASDAQ:AAPL), and Google Inc (NASDAQ:GOOG), they often forget about the other important stocks in the NASDAQ 100 that have been weak.
Leading tech stocks such as Qualcomm Inc (NASDAQ:QCOM) have topped out in January 2010 and continued to slide really ever since that time. Qualcomm Inc should have good daily chart support around the $35.00 level.
Cisco Systems Inc (NYSE:CSCO) topped out in late April and declined further after reporting earnings. In April the stock topped out around the $27.74 area and has been trading lower ever since that time. The stock will have short term daily chart support around the $24.00 level.
The Semiconductor Holders Trust (NYSE:SMH) is a basket of the leading semiconductor stocks. Often many traders and investors view the semiconductor index as a technology barometer. This ETF seemed to top out in the middle of April around the $30.50 level. The Semiconductor Holders Trust is now trading around $27.42. There is minor daily support around the $27.00 level on the daily chart. However, the stronger daily chart support level will be around the $26.00 – $26.50 area.
Technology has rallied sharply over the past year due to major cost cutting. Now the second half of this year is the the real test. Is there really demand for all these products that have been produced? The stock price usually tells the truth.
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