Once again we have seen the FOMO in technology signal a top in the sector. Time and time again, investors or traders get excited about chasing the hottest stocks/sectors, usually when it's too late.
As shown in the chart below, I've highlighted the divergences that warranted caution on the buy side. It looked like the tech sector should have some sort of pullback or decline before resuming the uptrend, if it does resume.
The sector is now below key moving averages which signals further weakness and could drop significantly further before stabilizing.
Time will tell of course, so I'm watching closely to determine when & if to enter a long position.
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