Tech Stocks Slammed As Algo’s Run Wild

The technology sector started off quiet, then around 12 p, a program came in and the Algo’s appeared to take over bringing the sector down pretty hard. The Technology ETF (XLK) was down around 1.6 percent on the day.

Algo’s Take ’em Down

In the chart below we can see how the stocks all began moving around 12 pm, and how all they seemed to trace out very similar patterns into the end of the day.
Technology Stocks Sell off on Algo's runamuck

AMZN Price data by YCharts

Today’s move lower took us back to the June 9 sell-off lows. Setting up a critical support level.

Technology XLK Intraday chart

What To Watch For

It will be important to see how the sector recovers in the morning or if the selling continues.  It could be a case of filling the gap from June 19.

Today’s selling seemed methodical, with a get  ’em done by the end of day feel.

July 4th

Remember with next week being a holiday week liquidity in the market will become an issue as the week draws to a close.

Let’s Us Write Research For You!

Email Us To Get More Info

Get Our Latest Reading The Markets Premium Video Segment For Free – Just Subscribe Below

[wysija_form id=”10″]

To Sign-up and get a free two-week trial click here. 

 

Free Articles By Mike

Pandora’s Plunging Market Value May Shrink Further

Why AMD’s Stock Is Set for a Fall

Why Western Digital’s Soaring Stock May Stall

Disclaimer

Michael Kramer is the Founder and Portfolio Manager of Mott Capital Management LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.