The Tech stocks took it on the chin last week. The Nasdaq 100 index has been lagging its blue chip peers for nine weeks. Friday’s close of 1796 was below its weekly close of 1800 on November 17, 2006. Interest rates are climbing around the world and the U. S. 10-year bond remains in a downtrend. The realization that the next move by the Fed may be a rate increase could be the catalyst that derails the stock markets uptrend. I still expect the Standard and Poor’s’ 500 cash index (S&P) to finish its topping process by mid February and then make a strong contra seasonal move down into May.

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Posted by Michael Chapman at 12:37 PM PST