The bright future ahead of tech sector is under question!

As far as volatility is concerned, the data become more and more ugly. Nasdaq's 30-day volatility has tripled for five weeks, the level reached last in 2011. The prices for protection through options in the technology sector are booming to a near 7-year high.

"Increased volatility, rising price fluctuations reflect investors' nervousness in the history of technology companies, which seems to be changing," said Alex Balfour, chief economist and strategist at Mackenzie Financial Corp.

During a sell-out, triggered by a rise in Fed interest rates, a slowdown in growth and a weak reporting season, technology companies are the biggest victims. Revenue from technology giants is expected to grow 31% more than SP500, but all this will disappear as early as 2020.

The option market implies that the higher revenues of technology companies will succeed in preserving the sector. The spread between the CBOE Volatility index, which is an indicator of the expected SP500 moves next month, and the similar benchmark for the Nasdaq 100, is more than two standard deviations above its average annual average. This suggests that in the future Nasdaq will be a bit more sensational about sell-offs.

Let's look at the ETF's traded funds as well.

Stock market uncertainty has prompted investors in technology ETF's to raise more than $ 300m. only at the end of last week. Although the sum was small, it remained in full line with the main movement, which was Long.

"The reporting season is over, there is no macro data, and the only catalyst by the end of the year remains the Fed's interest rate increase," said Michael Antoneli, an institutional trader and managing director of Robert W. Baird & Co.

Source: Bloomberg Finance L.P.

Charts: Used with permission of Bloomberg Finance L.P.

Read more:

• Peloton can collaps by 86% under competitive pressure
• Hong Kong will continue to push down the financial markets!
• S&P on a historic high, analysts expect more gains
• 7 best exchange-traded ETFs for dividends
• Five cannabis stocks under $10 you need to buy