In early October, the technology sector looked set to extend its rally to fresh all-time highs. Now, that move is in serious question. The Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100, pushed above the key $750 level and reached a record high near $763 on Oct. 6, only to reverse and fall back below $750 by Oct. 13. Technicians call that kind of move a false breakout, and it is one of the market's more treacherous setups. It often traps buyers at the top right before a deeper pullback.
What makes this one more concerning is the overall market breadth, or rather, the lack of it. A narrow handful of mega-cap names drove the run higher while the broader market lagged badly. Worse, some of the leading groups, including semiconductor stocks, have started to roll over.
