Intel warned that the financial results for its current, fourth fiscal quarter to be "below expectations". Intel stock INTC was hit hard in after hours trading, which is typical of stock that issue lower guidance in a bear market. Intel is a technology bellwether. It put the reasons for lower guidance on the economy. That is usually what they do when there is general consensus that economy is weak.

INTC closed at 13.52, and dived to 12.50 area during after hours trading. That is a big gap drop for a major technology company!

Other companies in the same area issued warnings including AMD (applied material), and CSCO (Cisco).

Real-test for technological sector will be Friday of this week, as we will know whether it will rebound from today's selloff and recent negative news.

We expect another wave of layoffs in technology sector. AMD already announced some today.

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