A Warning for Tech

|
 |  Includes: FXL, IYW, PTF, QTEC, REW, ROM, XLK
by: Cam Hui, CFA

The chart below shows that both smart and consensus mutual funds are selling their Technology holdings. In the face of such selling pressure it will be difficult for the sector to make any headway in the medium term.

Click to enlarge

This concerted selling is occurring just as this Bloomberg story pointed out that Bank Stocks Cede Biggest S&P Weighting to Technology. Is the story the ultimate contrary indicator?