The Ciena sell off has been too much for triple Qs, and they have dropped below support.
Nasdaq-100 Daily Chart
The Nasdaq-100 (AMEX:QQQ) is down 2.17%, and barring a late-day recovery will close below support at $39. Future support levels are hard to come by, but perhaps the gap on April 10th will be able to halt the decline at $37.40. The Qs are oversold based on their stochastic, but the indicator looks like it might want to stay there for a bit. Other than Ciena, software stocks are killing the Nasdaq-100 today.
Veritas Daily Chart
I believe I heard yesterday that 6% of the Nasdsaq-100 stocks are making new 52-week lows, and we can chalk up another one thanks to Veritas' 9.7% drop today. Of course the stock is oversold, but if we look back at March and June, we can see that it could stay that way for two weeks or more.
Traders should be systematically reducing risk
Bearish traders in PeopleSoft (NASDAQ:PSFT) finally got the breakthrough to the downside they were looking for. Today's breaking of the $38 level should have traders lowering their stops from shorts implemented in the $42-$38 range.
PeopleSoft Chart - last seven months
It took some doing, but shares of PSFT finally broke below the 38.2% retracement level and the bearish trader's preliminary target of $34.31 looks reachable in coming sessions. The "ultimate" goal would be the $30.37 area, but there's that upward trend near $32.25 that could help stall a decline. We had laid out a trading strategy for PSFT and potential bearish targets back on August 10th in the premierinvestor.net market wrap (www.premierinvestor.net).