— R. Alfonso Depablos (@AlfCharts) September 25, 2020
Today’s Chart of the Day was shared on Twitter by R. Alfanso Depablos (@AlfCharts). It’s a daily chart of the Technology sector ETF, $XLK. The five heaviest components in this ETF are Apple, Microsoft, Visa, Nvidia, and MasterCard. All eyes have been on Tech lately, and rightfully so. It’s by far the largest sector in the S&P 500, making its performance highly influential to the broader market. $XLK first ran into problems earlier this month at an important Fibonacci level – the 1.618% extension of the Feb-March crash. Alfonso points out that $XLK found support at former resistance from the July highs around $110. Interestingly, Tech was the strongest sector this week. At this point, Tech is about 10% off its all-time highs and resting at its 50-day moving average. After a much-needed correction, could everyone’s favorite sector be ready to lead the market higher once again?