DELL probably is the best example of this. We are at the level the where the NASD commenced a mind boggling trip into the stratosphere until reality set in last March. From a technical perspective, the NASD has overhead resistance at 3,050, and 3,230 and then around 3,400. There is no apparent catalyst to right some of the vexing fundamental concerns. Overtime, this will stifle innovation and economic activity.
Debt capital is tight, and vendor finance has been burned.
Many tech names are suffering the law of large numbers, where sheer size make it onerous to sustain acceleration. We are weeks away from earnings warnings season and this year could be very tought. Inflation is low and economic activity rapidly decelerating, suggesting the Fed will change its bias to neutral and eventually start to lower rates. This would be tonic for a market in need of good news. The election will ultimately be resolved, and, regardless of winner, will not provide a mandate to destroy the surplus.