Large Cap Software Non Participation:

It is no secret to the frailties of the software space within technology. The IGV remains near the bear market threshold, lower by 17% from highs made on 11/9 that precipitated a swift 100 handle decline to this week’s lows. Those thinking that the large/mega cap software names would shield some of the blow have been proven wrong. CRWD retested the very round 200 number Wednesday in a bear flag breakdown that began at 300. TWLO has been cut in half from its 52-week highs, without the courtesy of a 2:1 stock split. Those that have the “old tech” moniker have been heavy too. CRM is 24% off highs and looks shortable into the 244 area in an upside gap fill from the 1/4 session. ADSK bulls need to 250 level to hold as it swims below its 200 day SMA. INTU looks attractive if it can hold its 200 day SMA although that is 7-8% from current PRICES. MSFT is holding the gap fill from 10/26 and the chart below of ADBE has decent risk/reward a small bit lower from here. Its decline started with a dubious engulfing candle at 700. Will the definitive one at 500 this week prove to be a concrete floor? PRICE will tell.

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