In spite of reaching bear market levels (for about 12 seconds) early in April, tech stocks have almost totally recovered, now being a mere 1% beneath its lifetime peak as measured by the QQQ. From a charting perspective, this moment is important since we are almost perfectly mushed against the broken trendline. Tomorrow’s jobs report should settle whether this trendline simply doesn’t matter or whether it represents true resistance.
Some key stocks that are helping the rise include NFLX……..
…..and MSFT, which is also at a lifetime high.
From a very long-term perspective, the ascending channel is broken, and the resistance tech stocks are facing should be formidable. Fear seems to have exited the building, however, so perhaps the summer rally that everyone has been talking about is about to kick off. Tomorrow morning’s action should be quite revealing.
