Stocks ended in positive territory for the third-straight session Monday, as investors geared up for the start of the second quarter earnings season.
Intel (INTC) slumped to lead the S&P 500 laggards Monday following a bearish note from Citi. In addition, Evercore lowered its rating on Intel to “underweight” from “equal weight” and cut its price target to $20 from $22. Shares of Intel dropped 3.6% while the Technology Select Sector SPDR (XLK) fell -0.06%. Below is an updated look at a trade in XLK. The ETF has been on a tear in recent days and currently at an interesting spot.
The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for XLK. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – Technology Select Sector SPDR (daily)
As indicated in the above chart, our “U.S. Market ETF Trading Map” rates XLK as a Hold. XLK moved up to test resistance at the June bearish downside gap after the June correction tested and respected support at the bottom of its short-term trading range. Monday bearish engulfing candlestick is a clear indication of supply overwhelming demand…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
Subscribe to CEM News to receive more in-depth research from Capital Essence.
P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.