Tech Sell-Off
A sell-off in the tech sector has dragged stock index futures lower, with S&Ps trading well below 1500. In the late morning, S&Ps were trading at 1496.30, down 20 handles. The high for the day was 1507.50, and the low is 1494, set early in the session on a sharp sell off in S&P futures.
We see support for S&Ps 1493.50 and below that 1491-1490. On the resistance side, we see 1500-1500.50, 1502 and a major at 1505.
Weakness in the tech sector today is clearly indicated by the SOX, which was at 1094.95, down 51 points or 4.5%. The DOT index was trading at 822.85, down 42.60 or 4.9%. Several tech stocks have also been weak, including Intel, Oracle, Nextel, CMGI, IBM and Hewlett-Packard.
NASDAQ futures have been trading lower, but have come off the lows of the day. At late morning, NDU was trading at 3957, down 95 or 2.2%. It had its high early at 4009, before selling off and posting a low of 3927 at 9:48 a.m. Central — just four points under the 100-day moving average. After that, NASDAQ futures climbed steadily to make a recovery high of 3964.
We see support for NASDAQ at 3931.50 (the 100-day moving average, then 3913.50, which was Wednesday’s low settlement, and below that 3900-3866. On the resistance side, 3966 and 3995 are two key areas.