Upside Is Limited for the Nasdaq

Tech stocks stabilize, but the upside for the Nasdaq should be limited.

Friday's decline on the Nasdaq makes it easier for the tech stocks reporting earnings this week, but don't get overly optimistic. Be selective and look for undervalued tech stocks on weakness to value levels.

There has been some technical chart damage, which should limit a tech-led rebound by the Nasdaq. The daily chart profile is negative, with the 50-day simple moving average at 2251 and this week's pivot at 2260. A close this week below the five-week modified moving average of 2252 would shift the weekly chart profile to negative, indicating risk to my quarterly support of 2159. ...