Although the tech sector and its component stocks slid along with the general market in recent days, it is still at levels that have not been seen since the tech bubble burst 14 years ago, says Chris Kimble of Kimble Charting Solutions.
Since the 2009 lows, tech has done very well, up over 190% in the past five years. This rally has pushed momentum to levels not seen in 14 years! We have to go back to the dot.com peak to find momentum this high. At the same time momentum is lofty, the NDX 100 is hitting a line in the sand that has been important for the past 24 years!
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I believe that it can be rewarding to pay attention to leadership. Even though tech has done well, biotech has been white hot over the past 24 months. The inset chart reflects that two leading biotech companies and biotech ETF (IBB) have broken support lines of late.
Should we pay attention to tech due to momentum and patterns? I think so!
By Chris Kimble, Founder, Kimble Charting Solutions
