Failed breakouts in technology sector | stockbee


Failed breakouts in technology sector

In the last 10 days there were only 2 days with 200 plus breadth to positive side. 4 days had 194 plus down days on breadth. One of that day was 628 days. Distribution is trumping accumulation at this stage. 34/13 breadth indicator is on verge of a bearish turn.
The action in individual stocks also has been choppy. Breakouts from good patterns and from leading sectors are failing. That indicates those sectors may be rotating out or going in to range. Technology sector has witnessed number of such reversals. JDSU was a good example of that. Post Episodic Pivots stocks are going in to ranges or pullbacks as against follow through.
The only sector which has had number of big moves in last few weeks is Energy sector. The micro cap lottery tickets in that sector have had moves ranging from 30 to 300% plus in few weeks. At the same time the bigger energy plays have not really seen much gains.
At this stage the market is still in range and a confirmation on bearish side on Market Monitor would indicate a likely correction after a big move in the market from August 2010 bottom. Follow through on downside has been lacking in this market for several down moves. So dip buyers will still be active till that approach stops working.

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