Tech hit a wall, but history says this is it's next stop...
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What a difference a week makes.
After climbing for 5 straight weeks, the Nasdaq finally hit a wall, falling for the past 2 weeks.
The tech-heavy index hit an all-time high on September 2, crossing above 12k for the first time ever – but over the ensuing week it plummeted, dropping 9% - with the decline continuing through this week.
The S&P Tech sector actually fared worse, the SPDR Tech Sector (XLK) dropped double digits in that period.
Now, important to note, despite this drop both the Tech sector and the Nasdaq are still up over 20% each this year.
Nevertheless, history says, the recent selloff could present a buying opportunity.
Over the past 15 years, the Nasdaq has dropped by 9% or more in a week on 5 other occasions. Following those declines, the Index tends to bounce back hard 3 months later, gaining an average of 8.7%, trading positively 80% of the time.
Tech, as measured by the XLK, leads, jumping double digits – also a positive trade 80% of the time. 
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