After surging 37% last year, technology remains a favorite among investors, despite data suggesting technology stocks are relatively expensive as they trade at elevated price-to-earnings compared to the broader S&P 500. Roughly a third of global fund managers say they are overweight tech in their portfolios, according to a recent Bank of America Merrill Lynch survey.

Regarding QQQ, “in the past three years, there have been seven of these pullback signals involving the 126-day. The average one-week return following these occurrences is 0.77%, but the average one-month return is a 1.10% drop, with only 50% of returns positive over this time frame. The one-month return following the Feb. 6 signal is still an open question, but the one-week return was notably weaker than average — a loss of 1.61%,” according to Schaeffer’s.

For more news and strategy on the Technology market, visit our Technology category.

Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.