The Big Slide
The Software bug continues down the rabbit hole
The Dow Jones Software and Computer Services index has been in decline for weeks now. It ended a big wave B bounce and is falling now in wave C, which, if correct, can take it to new lows below the low of wave A.
The software index, though, may include components other than pure software stocks that have not bounced meaningfully and continue to make new lows. Here is a list of four that show a clear a-b-c bounce in May, after which another round of relentless selling started. Whether you believe it or not, software services are being thrown out till the business reengineering is complete. Most funds have written it off their books and are ignoring it for now.
