Tech Cliff Hanger:

Technology continues its weak manner, and remember trends in motion tend to stay that way more likely than they are to reverse. So far in 2022, the XLK is just the ninth-best major S&P sector lower by more than 31%, outdoing just real estate and communication services. The Nasdaq since a bearish WEEKLY engulfing candle at the very round 16000 number the week ending 11/21/21 has been in a steep downtrend and the notion of any V-shaped bottoms is long gone. This descent feels like it will be a prolonged one. For sure there will be sharp reversals higher, but they will most likely be short-lived. The days of mega-cap holding up the benchmarks is over, and it is doing the opposite now with the feeling of an anchor, holding it down. GOOGL, AMZN, and MSFT are each 35-40% off most recent 52-week highs (the first two of those names have undergone stock splits somewhat recently and that process is known to slow a stock’s pace down too). Below is the WEEKLY chart of the PSQ which could be bought outright or at least used as a hedge. Its daily chart would show the move through 15 being a cup with handle pattern. A chart working on different timeframes.

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