This morning's warning from computer giant IBM (NYSE:IBM) $86.20 -11.39% looks to have put the neck of broader technology on the chopping block and has the NASDAQ Composite (COMPX) breaking blow its upward trend on its bar chart. These technicals are bearish and technology bulls (there shouldn't be too many that are OI subscribers) should now be taking a defensive posture for many stocks in this market.
NASDAQ Composite Index Chart - Daily Interval
With a firm break of downward trend, technology bulls are going to have a hard time making their case that tech will lead a recovery. In fact, the technology heavy NASDAQ Composite (COMPX) is the first broader market average to severely violate its upward trend from last September lows. Should the downward wash continue, look for the negative action to begin pulling both the S&P 500 Index (SPX.X) 1,115 -0.65% and Dow Industrials (INDU) 10,181 -0.87% below their upward trends. Right now, both the S&P 500 Index and Dow Industrials are trading right on their upward trends. IBM is a Dow Industrials Component.