The monthly charts of two tech giants have deteriorated further, says MoneyShow’s Tom Aspray, and despite their attractive yields they are likely to underperform the S&P 500.
The surprisingly weak ISM Manufacturing Report Monday helped the stock market give up the early gains and close lower. This is likely the start of the expected correction that should take the S&P 500 cash to the 1395-1400 and the Spyder Trust (SPY) back to the $140 area.
I will be watching the extent of the pullback in the PowerShares QQQ Trust (QQQ) as it should find support in the $64.40-$65 area. A sharper correction will likely mean that Apple Inc. (AAPL) will not hold the support at $572 and may drop back to the stronger support in the $560-$564 area.
In reviewing the monthly charts of all 30 Dow stocks for my regular monthly column I noticed that the monthly charts of two tech giants had deteriorated further. Both are within 10% of their monthly starc- bands so a rebound is likely over the next month or so, but the longer-term charts then project even lower prices for these two widely followed tech pioneers.
Chart Analysis: Intel Corp. (INTC) has had a rough year as it closed 2011 at $24.25 and is now down 19.6% for the year. It is already close to the 2011 low of $19.16, which if broken would put most of the buyers from the last two years at a loss (More on yearly ranges).
The weekly chart of Intel Corp. (INTC) shows that the uptrend, line g, was broken three weeks ago.
NEXT PAGE: No Signs of Bottoming for Either Stock