Tech Stocks Hit Overbought Level Seen Right Before June's Swoon

(Bloomberg) -- The investor love affair with tech megacaps is showing signs of heating up to dangerous levels just ahead of a busy slate of earnings.

A net 39 of the Nasdaq 100 Index’s constituents are trading at a relative strength above 70 -- the most since June 2. The last time the group was flashing an overbought signal that strong, the tech-heavy gauge took a 5 percent tumble over the next month.

Amazon.com Inc., Alphabet Inc., Apple Inc., Advanced Micro Devices Inc., Microsoft Corp. and Facebook Inc. are poised to release results next week.

To contact the reporter on this story: Luke Kawa in New York at lkawa@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn

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