The Week Ahead: How Much Lower Can Tech Go Now?
Forbes | November 18, 2018
It was another rough week for the stock market as traders found more favored tech stocks to sell. The sellers hit Apple, Inc. (AAPL), which lost another 9% during the first three days of the week. From the Wednesday low of $185.93, it rebounded to close the week at $193.53, but is still down 16.9% from the October 3 high at $232.66. Generally, the major averages gave up their gains from the previous week, as the Nasdaq 100 lost another 2.45%, and is now up only 7.4% YTD. The Dow Industrials lost another 2.22%, as the continued decline in Boeing (BA) and the new selling pressure in Goldman Sachs (GS) dragged the average lower. The S&P 500 was down 1.61% and, like the Industrials, is up over 2% for the year. The Dow Transports, which led the market lower in October, was higher for the second week in a row. In last week’s analysis, I felt that a strong close in the major average was needed to complete a short term market bottom, but that did not happen.Clearly, the selling in the high profile technology stocks has dampened all rally attempts. In reviewing the stocks in the Nasdaq 100, there were five that closed on Friday below their November monthly starc- band. In past articles I have shared my lists of most oversold and most overbought stocks based on the starc band analysis.