Chart Of The Day: Been Waiting For A Tech Sector Buying Dip? It’s Likely Here

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Chart Of The Day: Been Waiting For A Tech Sector Buying Dip? It’s Likely Here

The fell 0.8% on Friday, extending the tech-heavy index's weekly loss to almost 2%. We don't see it as the start of a downturn however, rather, as a return move within an uptrend. The re-escalating pandemic and rising keep driving the market narrative—as well as current selloffs. That's surprising, in our view. In the past, investors cheered each time economic data disappointed, seeing it as a catalyst for additional dovish fiscal policy from the Fed which would include ongoing stimulus. On Friday, however, markets were sold off after showed inflation might become a disruptive force within a delicate recovery, even moreso after Fed Chair Jerome Powell said the economic growth thus far does not warrant removing accommodation. We're not sure if this is just a fluke or an actual paradigm shift. Only time will tell. Whatever it may be, either environment could favor technology stocks. On the one hand, the ongoing virus spread is keeping the global economy from re-opening, which has already proven to be beneficial for technology firms, which helped enable lockdown protocols in lieu of direct human interaction. On the other hand, a selloff in tech shares would counter concerns over their escalating valuations amid rising inflation and…