Fundstrat chart analyst: Washed out tech stocks will lead the market in a year-end recovery

  • Investors should concentrate and then capitalize on the year-end bounce in technology stocks, Fundstrat technical strategist Robert Sluymer says.
  • Sluymer points to names like Microsoft, Apple, and Intel, which he expects to lead the market for the rest of 2018.

Investors should concentrate and then capitalize on the year-end bounce in technology stocks, Fundstrat technical strategist Robert Sluymer told CNBC.

"You've seen a wash out on the technology trade. It rebounds. It leads the market higher in the year end," he predicted on "Fast Money" Wednesday.

Sluymer points to stocks like Microsoft, Apple, and Intel, which he expects to lead the market for the rest of 2018. He also sees upside in Adobe, Salesforce, Google-parent Alphabet, and Amazon, which "all collapsed" in October.

Apple and Microsoft are the two top-weighted stocks in the S&P 500 and in the Nasdaq 100.

The S&P 500, which fell nearly 7 percent during the October plunge, made back more than half of that decline this month as of Wednesday's close. The Nasdaq 100, which lost nearly 8.7 percent last month, has gained 3.4 percent in November.

"We don't want to see new relative lows," warned Sluymer, who has 25 years of experience reading the charts. "That would be a concerning sign for us that tech is not going to be rebounding."

However, he said he doesn't see that happening. "We think from here until year end tech continues to lead."