One of the most extraordinary things about technology stocks is that they're the first ones to crack under any pressure in the marketplace. Investors wax from enthusiasm to extreme distress very quickly with that group more than any other.
Going into this week, there were a lot of expectations that the tech stocks would deliver good numbers. As those numbers come out it's not surprising that there would be some profit taking. It's a temporary phenomenon.
The government contributed to that strength by spending more. Retail stocks had a good first quarter because with the strong economy, consumers had flexible spending power. The retail sector still has the power to outperform for the rest of the year.
The Nasdaq clearly has a positive tone. It's got momentum players back in a big way, going in and out of these stocks at regularly rising prices,
The enthusiasm investors have for stocks that have rallied us back to record levels will continue in place for the future and now that technology stocks are starting to run again, ... It's only going to add more fuel to the fire.