Last night saw a significant sell-off in the highly valued tech US tech stocks. They are also approaching chart support levels. What happens at these supports is worth watching. Is this just another rotation out of one sector and into others? Or is it a deeper correction with negative implications for the broader stock indices

Here’s a brief review of the FANG charts (Facebook; Amazon; Netflix; Google)

Facebook

Facebook had a rough session yesterday, falling 4.5%. However it bounced neatly off an extension of old resistance and a Fibonacci 127% projection point.

 Last night’s low could have been a significant turning point. If not, the 61.8% Fibonacci retracement at $158.35 of the $153.30/$156.30 support zone may come into play

Amazon

Amazon is approaching the support from its May/June lows. The 200 day moving average is rising to towards this area, creating a support zone in the $910/$940 area

A clear break of this could see a retreat to previous highs and the 61.8% Fibonacci retracement around $850

Netflix

Of all the Fang’s, Netflix is furthest away from obvious support at $164/$166.50 However, this looks a significant level. A clear break below the lower boundary of this support would complete a major double top pattern.

Alphabet (Google)

Alphabet is approaching its 40 week (200 day) moving average as well as trend line and horizontal support These are in the $US 905/915 range. On this weekly chart the slow stochastic indicator is coming out of the oversold zone so this could be significant support.

If this level breaks then the dashed support lines associated with previous peaks around $875 or $810 could come into play.