An individual large-cap technology stock that traders can focus on is Hewlett Packard. HPQ was a strong name in the group and acted as leadership in the sector prior to the bear market decline in late December. HPQ corrected sharply then and has since formed a bullish double bottom reversal pattern. This is a minor reversal pattern and marks the low in the intermediate-term corrective cycle for HPQ. The stock has broken out over the neckline of the formation and has since pulled back and consolidated the gains. HPQ has a bullish setup in place to continue the uptrend. The stock is back on the offensive and it's showing us bullish energy.

Traders can get long HPQ at this level and use a failure of the neckline at $45 as a stop loss. If bullish sentiment starts creeping into this market after some of the highest bearish sentiment readings we have seen since 2002, the Nasdaq and the technology sector could produce some relative outperformance in the weeks and months ahead. Hewlett Packard is in a strong technical position to benefit from any bullish change in the technology sector and the stock should act as leadership in the group.

Hewlett-Packard

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Computer Index

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