Technology Bending?

It seems that almost on an hourly basis we hear how the great rotation out of growth into value is taking place. Of course it is happening on a nascent basis, but is tech ready to just go away just yet? The ratio chart contrasting the Nasdaq to the S&P 500 below shows the relationship at a critical juncture. Tuesday did witness some more strength in the cyclical spaces such as industrials, and the finnies led the way with the XLF rising 1.2%. Even if this comparison, in favor of the industrials intensifies, it does not mean technology is just going to roll over and die. Semis via the SMH reside just 4% off all time highs, and software with the IGV is 6%, and did find support at an upward sloping 50 day SMA almost precisely today. There is no question technology is experiencing some instability, as over the last one week period as it is the worst performing major S&P sectors down 1.8%. But this group is also being affected by seasonality pressures. Most likely it is taking a well deserved, prudent pause, before a thrust into year end in Q4. 

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