“Old Software Plays Weighing”:

With the Nasdaq starting to show some strength, CLOSING at or in the upper half of its daily range 8 of the last 9 sessions, one has to take note it is doing so as some mature software names hold down software via the IGV. The weakness was delivered last week with a third consecutive negative earnings reaction from the old reliable ADBE (which has declined by 10% its last 2 reports). In fact 3 of the top 5 components in the IGV, in CRM ADBE and INTU are now more than 30% off their most recent 52-week highs. ORCL the 5th largest holding is trying to repair the technical damage that began almost instantly after the disappointment following its CERN acquisition last December. The lone exception of the top 5 is MSFT which is holding the very round 300 number and lower by “just” 13% from heights made at the round 350 figure on 11/22/21.¬†With the Nasdaq tacking on another 2% last week, after the prior week jumped more than 8%, one has to wonder if software can start to show any resemblance of a rally, perhaps technology can start to show some leadership and that would obviously be a very welcoming sign for the overall market.

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