The Nasdaq (NDX) decline from Friday has a negative impact over the European Tech sector

On Friday, the US technology sector declined sharply, which could shake the stock markets. It is very likely that this decline is caused by massive profits taking from the big market players. The Nasdaq (NDX) closed on Friday at 5731 over 130 points lower.

During the early European trading, negativity has also shifted to the technology sector in Europe, where we see a serious impetus for decline.

Instability in the technology sector may also have an impact on the risky asset market as a whole. We remain cautious for short positions. If the French CAC breaks below 5225, it will activate the Head & Shoulders formation for a likely downward impulse. If German DAX breaks below 12625 that will also give a reason for short-term sell positions.

An exception is the London FTSE100, where the weak pound provokes investors to make cheaper new stock purchases. An additional prerequisite is the expectation of rebounding oil prices from support levels due to positive fundamental expectations that will support the large exposure of the index to oil companies.

Trader Nikolay Georgiev

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