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Big cap Tech performing like big crap tech

Thursday, 29 September 2011 13:06

As I write this at 1:15 pm on Thursday 9/29/11 I am watching a few my favorite names just getting pummeled, BIDU, AMZN, LULU, NFLX and AAPL. Of course the bearish engulfing candle on AAPL predicted all of these moves but for me the scary thing is to look at the weekly charts of many of these names, notably BIDU and NFLX which are through significant weekly support and not so close to the next level.

AAPL is trying to hang in there but any more selling pressure on this name could drag this name down through $385 support and easily into $364 which is next. NFLX is trading like it could go to zero and NVDA has its sight set on $12.00.

Meanwhile in an odd twist of fate, banks are having a good day as well as material stocks. This is a frightening proposition for the broad markets as you do not want the new leadership sector to be made up of names that are technically weak. There is an old adage on Wall Street that says "they bring up the crap last" meaning that the poorest performers take the lead when things are about to get worse.

Between the AAPL negative pattern, other tech names breaking down hard and leadership names turning over, the current support on the S&P at 1117 is going to be crucial.