Tech Stocks Haven't Done This for Months

Tech stocks or QQQ did something last week that it hasn't done since April 3rd. It closed below the 20-day exponential moving average.

I've been using this moving average to keep me long technology-related names, as well as concentrating on long side setups for swing trades.

Friday's negative close, along with the declining momentum (RSI) was a warning sign to be cautious coming into this week.

Also, with technology heavyweights Facebook, Amazon, Alphabet, and Apple reporting earnings this week, volatility and uncertainty are pretty much guaranteed. 

I think $250 is an important support level to watch moving forward and if we can end the week above, I think this rally has a solid chance of continuing throughout August.

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