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Software Sector Starts To Fall Apart. Broader Sell-Off Ahead?

Published 07/15/2020, 01:36 AM
Updated 09/20/2023, 06:34 AM
QQQ
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ADBE
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SPLK
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WDAY
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DDOG
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Invesco QQQ Chart

Workday

Some of these software stocks have seen real damage. Workday (NASDAQ:WDAY) drop below an uptrend that has been rising against since March. The stock could be on its way lower to $169.

Workday Inc Daily Chart

Splunk

Splunk (NASDAQ:SPLK) also broke an uptrend, and that could indicate a decline to $170, is coming.

Splunk Inc - Daily Chart

Datadog

Datadog (NASDAQ:DDOG) also broke an uptrend, maybe with a push down to $80.

Data Dog Inc Daily Chart

Adobe

Adobe (NASDAQ:ADBE) came close…

Adobe Inc Daily Chart

It isn’t a coincidence this happened because these all move together, but I’m not sure what it means. It could be the start of a broader sell-off in the group, and thus the QQQs. Or it could merely be a one day glitch and we resume the uptrend today.

I would tend to think it is not a glitch and that it is the sign of a broader sell-off, but only time will tell, and I will continue to watch these names closely, as you should too.

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