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.

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.

Tech companies tend to do tech best.

Tech companies in general are going to have a multiplier effect versus the GDP. So as long as the GDP stays relatively strong, tech earnings should be a multiplier of that. If we see the GDP slow down markedly, then we could have a real problem in technology. But we don't see that yet.

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.