Technology stocks have been one of the leading sectors during the recent bull market, however, there are mounting signs that the bull run may be over. March was not a pleasurable month for tech investors, and April hasn't been much better with many investors sustaining double-digit losses in a relatively short period of time.

Some large hedge funds have even decided to return money to investors after the recent reversal of fortune. Stocks such as FB, NFLX, TSLA and GOOGL led the market rally at the end of 2013 and into early 2014. However, since early March many of these names have suffered 30%+ declines:

Click to enlarge

FB

FB

GOOGL

GOOGL

NFLX

NFLX

TSLA

TSLA

While there has certainly been a great deal of damage inflicted upon these charts recently, 3 out of 4 of these names remain above their 200-day moving averages and all continue to be in long term uptrends.

However, should we see the percentage of Nasdaq stocks above their 200-day moving averages fall below 50% and remain there for more than a week it could be an indication that a significant change of trend has taken place:

Nasdaq_200-day

The percentage of Nasdaq stocks above their 200-day moving average peaked in August and continued to make successive lower highs before rolling over in March. 

If there is one stock that may hold the key to overall market sentiment, it is GOOGL - clearly the strongest stock of the 2013-2014 bull run in tech, GOOGL has since begun to exhibit strong signs of institutional distribution and a large rounded top has formed:

GOOGL_Daily_4.17.2014

The bulls will need to defend the $530 level in GOOGL or risk a much larger correction with the potential for the open gap down at $444.83 to be filled in.

While we can't emphatically state that tech is a broken sector, the warning signs are mounting and the bullish momentum has all but completely dissipated.