A lot of these companies have finally started to reach full valuation, and there really haven't been any significant changes in the fundamentals to justify it. There's just a lot of profit taking.

A lot of these speculative names have rallied more than blue chip tech companies only because they were punished a bit too much on the downside.

It's significant. The changes are not minimal.

We're already starting to see valuations get stretched again. It's not unlikely that we can get back close to 1,700 on the Nasdaq, but I don't think that's necessarily justifiable. That's just a function of trading psychology in the short run.

A quicker-than-expected recovery in capital expenditure spending will probably be the biggest catalyst, if one occurs at all.

Valuations remain a little stretched, and we could see some further weakness into the early part of the year.