Volatile tech stocks expose growing vulnerability in US market

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Next guest warned. There could be bigger pullback looming for some of the hottest names in this space. Let's go off the charts with the legendary louisiana mata louisi- mata technical research advisors louise. It is a pleasure as an honor for free to join us. We quote you many times on this show. So i'm really really curious to hear what you have to say about tech. You're you're climb melissa. Well we've had a volatile three or four months and technology has really been enough more or less going sideways for the fang stocks in particular. And we've got a little concerned that the most important thing would be support levels and recognizing the since two thousand when there were next we have earnings that these stocks but they could be off twenty percent and still be within an uptrend. Some of them are already off. When percent question is during a break. The support of these sideways consolidation. Will they be able to lift. Google of course has already lifted so we have. We have three stocks. Here today amazon. I think gives the first one I'm not seeing it. It may be coming up. But i'm not seeing any of that. Is you can see the sideways action. We have negative momentum on that on that chart and it's already been down eighteen percent so as long as it holds above twenty. Nine hundred is critical support than maybe just simply continues to consolidate further. Maybe we'll see a resolution on the upside that the point is that more or less been warning about support levels in suggesting we let the upside take care of itself. The next chart. I believe you have is microsoft and support. There's one ninety five but you can see also it's been going sideways for quite some time with lower highs and it's been down fifteen percent I think the most vulnerable of these stocks is net flicks which has not only a negative momentum on a weekly basis but also a negative divergence on a monthly so support for netflix's four seventy already off twenty percent and keeps bouncing and going down another twenty percent within the sideways consolidation so That's our concern here today. I must say was impressive. Day and not all tech stocks are looking vulnerable but these ones that we have been concerned about louis. At what point do you say. They're consolidating and building a base as opposed to threaten to break the support. That would be breaking out through the upper level of these consolidations so basically these are critical support levels as long as they hold. We continue to define that as a consolidation. And if at some point down the road they lift up through the entire consolidation than we. We've become more constructive once again. Google for instances one of them has already broken out to the upside. Netflix's looks a little bit more vulnerable to me. Last question lewis. Because we quote you and i. I think that we misquote you. But the sentiment is there when it comes to your saying the longer the base the higher in space is that is that the sanger. We're getting that right. Yes absolutely the bigger. The base that aaron space the because atop the bigger the drought and the bigger the drops a longer the need for repair. And i think what we're seeing as we're getting excited about some of the underlying broadening that's taking place is that may be the repair processes beginning for some of these other stocks that have been in bear markets. I could throw a triple this one. That's looking interesting but you have a few industrial center. Starting to break out in that heart warming. We felt that the market has been a little bit mixed up itself and not sure you know as a discount mechanism. What's coming six months. Maybe these vaccines we have a better

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