Think the selloff in tech is over? Think again.
Large technology stocks have been under substantial pressure in the last two weeks, correcting hard after a strong start to 2017. By themselves, the "FAANG" stocks -- the group made up of Facebook (FB) , Amazon.com (AMZN) , Apple (AAPL) , Netflix (NFLX) and Alphabet's (GOOG) (GOOGL) Google -- lost more than $126 billion in market value in the two trading sessions leading up to this week.
That's a drop that's been hard for most investors to miss this month.
Big tech clearly isn't done taking a beating quite yet: As I write, the Nasdaq Composite Index is down approximately 1% in Thursday's trading session, more than 10 times the price dip seen in the less tech savvy Dow Jones Industrial Average.
The tech selloff's next victim might be tech giant Alphabet Inc.
In spite of the recent dip in tech, 2017 has been a pretty great year to be a shareholder in Alphabet. This stock is up nearly 21% since the calendar flipped to January. An important part of Alphabet's persistent strength is the fact that it made it through the recent drop in its peer group relatively unscathed:
Unfortunately for Alphabet bulls, the price action is suggesting that the recent relative strength in Google's parent company could be about to change. To figure out what's happening in Alphabet, we're turning to the charts for a technical look.
In case you're unfamiliar with technical analysis, here's the executive summary: Technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
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