Things are 'deteriorating' for tech: Chartist

Tech's moment of truth

Technology stocks have struggled of late, with the sector underperforming the broader market over the past six weeks. And according to one top technician, it's about to get a lot worse.

"This has been an outperforming area of the market that's starting to underperform," said Carter Worth, technical analyst at Cornerstone Macro, on CNBC's "Options Action" on Friday. "That's usually the sign that something is starting to go wrong."

Worth noted that 65 percent of all tech stocks in the S&P 500 information technology sector were trading below their 150-day moving average, a technically significant development that shows the trend for these equities may start to head south.

"Things are deteriorating here," Worth said.