The World Technology stocks are further sliding down.
The DowJones Global 1800 – Technology Index has broken the long term support in October/November 2008. This is a clear sign the bear market, which started in 2000 on the technology tumble, is still in place.
Clearly the below chart indicates a further downtrend into the lows of 1992. Although a temporary retracement into the support/resistance line is still well possible on the short term. A retracement back above the longterm support line will invalidate this scenario. Note the index is now well below it’s 20 month moving average.
The World technology stocks are further sliding down.
Likely Price Target : Half of the current value
Probably Time Target : Feb/March 2010.
The time target for a low in technology stocks
coincides with Fibonacci and Gann time targets. We are now on a final wave 5 down. It’s difficult to say if this will be the end of a bear market in technology stocks, or only a temporarily low, after which we get some relief for a several years before the bearmarket continues.
The DowJones Global 1800 – Technology index consists of the worlds most important technology stocks such as: Alcatel Lucent, Apple, ATOS, CANON, CapGemini, Computer Sciences Corp, Dell, HP, IBM, Intel, Logica, Microsoft, Nokia, Oracle, Sun, Yahoo and many others. See the other components here (click on link left).
As many technology stocks behave alike most of these stocks will likely experience a further downtrend along with this sector index into the time and price tragets as given in this analysis.
Take care in your trading.
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