Craig Johnson, chief market technician at Piper Sandler, has a bullish outlook for these tech stocks and sees room for further upside.
"If we take a look first at this Nvidia chart, here's an example of a stock that's come back, retested a longer-term uptrend support line, and is now getting very close to breaking out to all-time new highs," Johnson said on CNBC's "Microsoft and Adobe also demonstrate promising upside for the XLK. Johnson says.
"From my perspective I want to be a buyer of these stocks in here, and I think as you look forward into the end of this year, I think the market will go higher. I think it would be led by tech," Johnson said. After such steep declines, Joule Financial President Quint Tatro said, investors should use this time to book profits, given high valuations.
"The XLK as a whole, the technology sector ETF, is trading 17 times sales, which is only slightly off the high of [Dec. 31, 2019] and we're starting to see those sales decline across the board." Tatro said during the same segment. "So, regardless of the moves, we view it as a great opportunity to book some gains and, and protect further opportunities, down the road."
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