Technology stocks, especially big technology stocks, led the markets lower today with the NASDAQ 100 down 1.30%.
But no sector stepped forward to say “Give me the cash.” The consumer discretionary and consumer staples Select Sector SPDRS, XLY and XLP respectively, fell 1.39% and 0.92%.
The day’s trend looked like a combination of fatigue (the old trends just didn’t have much oomph!) and a rising tide of potential worries exemplified by rising tensions with China.
But some of the downward direction is rooted in the continued technical weakness of those big technology market leaders. The 50-day moving average, an important support level, is under increasing pressure. Apple (AAPL), for example, was down another 3.17% at the close and finished at $106.84, well below the 50-day moving average at $110.58. The NASDAQ 100 (^NDX in the Yahoo quote system) closed at 10936, well below its 50-day moving average at 11189.
Microsoft (MSFT) fell 1.24%. Amazon (AMZN) was down 1.79%. Nvidia (NVDA) dropped 2.20%. Qualcomm (QCOM) was off 3.65%.
But the decline in the technology sector hasn’t so far translated into general worry in the market. The CBOE S&P 500 Volatility Index (VIX) was down 2.38% to 25.83. If worry were rising, I’d expect the VIX to be climbing rather than giving up ground.
