The last few months have been terribly exciting for the technology sector. It is the most loved and the most hated at the same time.
Long-term players want to be long the sector but cannot justify adding to stocks when they are at nosebleed levels and are too scared to average in higher. Short-term players always try to short the sector, trying to call a top, but they risk getting burned as the momentum is just too strong and wipes them out. Because of the massive weighting of these stocks in the large-cap indices, what happens to them has huge bearing on what happens to the rest of the sectors and industries, and vice versa.
Back in August, the S&P 500 moved 8% higher on light volume and no new news about the economy or the recovery. It was a handful of stocks dragging the index higher, among them Amazon