Not Turning a Blind Eye Towards Tech

Despite a steep earnings selloff in SONO, tech is largely outperforming the rest of the market this morning. Overall, bears were unable to initially follow-through on the soft overnight futures, though small caps are lagging as I write this, with the IMW ETF off by 0.4% or so.

Still, software names are notably impressive again, as illustrated by the IGV sector ETF, below on the daily timeframe. 

As we know, there is plenty of overlap between software, cloud names and cybersecurity-related plays, too. And many of them, indeed, account for some of the better movers in the tape this morning. 

Moreover, given the weakness in semiconductors here (see INTC), it is even more crucial for bulls to hold the line with these software names. At the moment, we have a few hidden gems on watch beyond the obvious names like CRM SPLK TWLO.