A Big Move Brewing in Tech 🌤️ The Morning Print
Good morning!
The Technology sector is nearing a resolution from its multi-month consolidation.
How this resolves will carry important implications for risk appetite and overall market health.
Here's the setup.
Technology ($XLK) continues to hold near the $135 level and has so far avoided a breakdown.
Relative to the S&P 500, Tech is attempting to bottom at former support and is now pressing against the upper boundary of its short-term coil.
In the near term, it could still reject and move back toward the lower end of the range, but for now the setup looks constructive.
If Tech can breakout of this relative contraction, there’s still additional work ahead as it must clear its series of lower highs.
The best outcome for the broader market would be for Technology to reawaken and reestablish its durable uptrend.
Otherwise, a completion of these long drawn-out tops would signal that the sector is rolling over.
The Morning Print is brought to you by The Chart Report.
If you would like to share a chart or just say hi, shoot us an email at info@thechartreport.com.
