Technology's year of efficiency faces its first major test this week as big technology earnings kick into high gear.
Across the information technology sector, earnings are expected to decline 15.1% year over year, according to FactSet data.
The setup for technology stocks It's hard to pinpoint one specific problem denting earnings expectations this season.
Heading into the second quarter, many technology companies already face lowered earnings expectations, with analysts lowering earnings estimates for the information technology sector in the first quarter by 6.5% in aggregate, according to FactSet data.
"We plan on being either not in any of these names or hedged or short some of them going into earnings season," Niles said.