Technology stocks were a key driver of strength in the economy over the past couple of years, with bellwethers such as Apple Inc.rising 31% and emerging giants like NVIDIA Corporation rising more than 630%. With valuations becoming stretched in some cases, investors have started to temper their expectations for these companies. The fall in the PowerShares QQQ has underscored these sentiments over the past few sessions.
Despite the growing fear, some analysts remain confident in the tech sector. Not a lot has changed from a fundamental standpoint for many large tech firms, but some companies like Facebook, Inc. have been hit a lot harder than others. Traders may also be shifting capital away from the technology sector and into other sectors, such as energy, that may offer more compelling valuations and potential over the coming quarters. (See also: Europe’s Techs Poised to De-FAANG U.S. Tech Stocks.)
The PowerShares QQQ broke down from support on Monday. Traders will be watching these key levels this week. …read more
Read more here: The QQQ Breaks Down From Key Support Levels
Category: QQQ, AAPL, NVDA, FB