A Trade Nobody's Talking About 🌤️ The Morning Print

Good morning! 

The Communications Services sector has been trading sideways since last September, and its recent coil suggests a big move may be approaching.

Here's the setup.

For months, the $120 level has acted as firm resistance for Communications.

The most recent rejection came in Mid-April, and since then, XLC has been consolidating in an increasingly tight range.

While Technology has led the indexes higher, many other sectors have yet to make a meaningful move.

If Tech begins to cool off, Communications appear well-positioned to be a beneficiary of sector rotation.

Given that its two largest holdings are Google and Meta, the sector is often viewed as a close cousin to Technology.

With momentum building beneath the surface, XLC looks poised to make a resurgence.