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Big tech breaking to new lows

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"Big tech" continues to get a little smaller as the NASDAQ-100 Index (NDX.X) 848 -2.6% breaks to a new 52-week low. The NASDAQ- 100 Tracking Stock (AMEX:QQQ) $21.06 -2.7% is the most actively traded security this morning at just under 29 million shares trade and also breaks to a new 52-week low.

Traders correlating some technology-related shorts/puts will perhaps be correlating technical support at the 811 level for the NASDAQ-100 Index (NDX.X) at the 811 level, which would represent a 4.3% decline from current levels.

NASDAQ-100 Index Chart - Daily Interval

"Key stocks" we felt traders should be monitoring on a near-term basis in the Q's and NASDAQ-100 were shares of Qualcomm (NASDAQ:QCOM) $27.68 -1.35% for resistance at the $28.00 level and Microsoft (NASDAQ:MSFT) $45.36 -4.42% for support in the $45- $46 range. A trade at $45.00 would have MSFT giving a double- bottom sell signal and breaking bullish support on its point and figure chart and negate the current bullish vertical count of $72 established in August. Look for resistance to begin building in MSFT at the $50.00 level. A trade at $45.00 in MSFT would have the bearish vertical count initially hinting at downside risk to a bull at $38.00.

Jeff Bailey
Senior Market Technician
Option Investor

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