The PowerShares QQQ Trust Series 1 ETF (QQQ) made a predictable rebound from its 50-day moving average for the third time since the beginning of the year. While tech stocks have experienced some turbulence in recent weeks, the benchmark index has not dipped below its 50-day moving average since Dec. 6, 2016, marking the second longest streak in history and a reliable support level for traders.

Chart showing the year-to-date performance of the PowerShares QQQ Trust Series 1 ETF (QQQ)

The 129-day streak is certainly impressive, but there are some signs of trouble brewing. The moving average convergence divergence (MACD) indicator experienced a bearish crossover following last week's dramatic tech declines, and the rebound may be losing momentum judging by the neutral relative strength index (RSI) reading of 53.92 and the fact that that the ETF is trading in the middle of its price channel. (See also: Tech ETFs Feel the Outlows.)

Last week, the tech sector experienced a dramatic single-day decline amid speculation that Apple Inc.'s (AAPL​) next iPhone wouldn't include a 1-gigabyte modem due to a dispute with Qualcomm Incorporated (QCOM​) and Intel Corporation's (INTC​) timeline for its own high-speed modem. Nvidia Corporation (NVDA​) was also hit by a negative report from Citron Research – a short-focused analyst firm – which caused many chipmakers to post similar declines.

The upshot is that earnings remain strong throughout the tech sector, and many long-term catalysts remain in place. Tesla, Inc. (TSLA​) shares were upgraded by a German analyst that remains confident in the company's long-term plans, while Warren Buffett's purchase of Apple stock could help set a floor for the market and a vote of confidence. These factors could keep the tech sector on track for the time being until signs of earnings weakness emerge. (See also: Tesla Tests All-Time Highs After Analyst Upgrade.)

Charts courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

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