The technology sector has proven to be one of the strongest since post Trump election, only showing little weakness with stocks like NVDA, TSLA and BIDU dropping down last week after earnings . However, there are many other stocks like AAPL and FB that are doing very well. The prior pivots for trading this week is $130.70 and $129.38 on QQQ ($52.65 – $52.17 for XLK) which are also the highs and lows on weekly chart of the last week. As long as QQQ hold $129.38, stay bullish and watch for follow through to clear $130.70 level. If bears build up power and broke $129.38, see if they hold and watch for follow through to $127.72 level.
But in spite of this, we are little extended so we need to be patient trading tech stocks. In case of gapping up on monday above $130.70 level or in another day after clearing this level, we may see a move down in that day as we move in overbought area.
Strong stocks :
FB, AAPL, BABA, AMZN, GOOGL or GOOG .
Weak stocks :
NVDA, TSLA, BIDU .