Tech May be Forming a Bottom

Breadth in the tech sector was good yesterday, indicating that we may be nearing a bottom. However, buying power has likely been used up in this latest rally off the floor, making it likely that the QQQQ will see a return to its lows before it can move significantly higher. If however the QQQQ insists on trading up back above $37 without a significant pullback to help it establish a better base, we will be forced to start shorting again as a move higher from these levels will be unsustainable.