As technology stocks dive and the tech-heavy Nasdaq Composite is set to log its first monthly loss since October, some strategists are forecasting further weakness for technology in the near term — with an upward resumption further out.
"The sector is in for what I call an intermediate-term correction," Robert Sluymer, technical strategist at Fundstrat Global Advisors.
That is not the end of the world," Sluymer said. "It doesn't mean that you have to sell all of the tech stocks that you own, but when you look at the very long-term for tech, from a technical standpoint, technology has run to the upper end of a very long-term trend line that goes all the way back to 2009."
As several technology heavyweights such as Google, Facebook, Netflix and Apple have already fallen below their 50-day moving averages, Sluymer predicted many names in the tech space could see a correction of 10 to 15 percent from here.
Source: Bloomberg
Junior Trader Stefan Panteleev
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