Technical Levels: Money Flow Into Tech
Technical Levels: Money Flow Into Tech
Technical Levels: Money Flow Into Tech
Technology shares are spiking higher today, leading the markets. The Nasdaq is higher by 50.34 (+1.90%), trading at2,694.01, while the S&P 500 and Dow Jones Industrial Average are lagging, up a respectible 1.5%. It appears money flow which had been shunning the technology sector is now rushing back in. Financial stocks are also weaker today after being stronger last week. It appears money is flowing from the bank stocks into the beaten down technology stocks.
It is truly fascinating to watch the charts. For instance, more tech stocks hit master levels of support last week prior to this rally than any other group in the market. This signaled a high probability of money inflow as trading programs and hedge fund players were spotting these levels. Take a look at the chart of Microsoft Corporation (NASDAQ:MSFT). Just last week the stock sold into a key gap fill from October 12th, 2010 and also hit a double bottom from November 29th, 2010. These two coinciding levels and an oversold Microsoft chart, signaled a high probability of a solid bounce. Today, Microsoft is trading at $25.37, +0.57 (+2.30%).
Charts provided by: RealTick LLCAnother stock that has surged in the last few days since the markets made a short term bottom is Hewlett-Packard Company (NYSE:HPQ). Hewlett-Packard was very a oversold chart and last week finally hit two major support levels. This level came into play at a gap fill from September 23rd, 2010 at just above $40.00. In addition, direct your attention to the pivot low made in early October. This also coincided with the $40.00 level. The combination of these two levels made Hewlett-Packard a sweet spot for smart traders. Since that $40.00 level area, HPQhas bounced back, hitting a high today of $42.10.Charts provided by: RealTick LLCThese are just two examples of major technical levels hit on technology stocks. Take a look at Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) last week as well. Both hit major levels. Apple Computer hit the master $326.50 level which was the pivot low from January 21st, 2011 and Google kissed the 200 moving average on the daily chart. There was literrally no way the markets were going to break lower in the short term without a bounce via technology. Learn the charts and profit. Gareth SolowayInTheMoneyStocks.comhttp://www.articlesbase.com/day-trading-articles/technical-levels-money-flow-into-tech-4448188.html
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