Double Top on Tech?Technology stocks had a strong first half but could be ending the year on a weak note. Is the sector finally losing its leadership?
Today’s chart of the SPDR Select Sector Technology Fund highlights the July 10 closing high of $237.68. XLK stalled around that same level a week ago, resulting in a potential double top on the fund.
Second, prices have slipped below October's closing high of $233.73. That stands in contrast with other big sectors like Communications, Financials and Consumer Discretionaries.
Third, relative strength in the lower study shows fading leadership in technology versus the broader market.
We end with a look at Nvidia NASDAQ:NVDA , which has been a major driver of the sector this year. Notice the sharply rising lower trendline and the higher trendline with less of an upward slope. That kind of rising wedge is a potential reversal pattern.
It could also raise the stakes headed into NVDA’s big earnings report after the closing bell next Wednesday, November 20.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Technology ETF (XLK)
1-year: +35.50%
5-years: +165.61%
10-year: +448.20%
(As of October 31, 2024)
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