Tech Pullback Could be Nearing its End

“Today’s “Power Five” trade at an aggregate of 30 times trailing earnings. That compares with an aggregate of 78 times trailing earnings for the five largest tech stocks in March 2000. This difference equates to total valuations for the five largest technology firms that are 60% lower than they were 17 years ago,” according to research from PowerShares.

Related: For Tech ETFs, It’s Not 200 Again

A key technical level is at play for QQQ that investors should be mindful of.

“The QQQ comes into the week trading just above the $136 level, which marked a bottom in May, thus setting up the potential for a “double-bottom” pattern to emerge. The $136 level is also home to its 80-day moving average, a technical level that is not widely tracked among traders. But we have seen this trendline mark support in enough instances that we pay close attention to it,” according to Schaeffer’s.

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