Tag Archives: Technology Select Sector SPDR ETF

Trading Strategy – Technology Select Sector SPDR ETF

 
Tech stocks were underselling Tuesday following report that the EU hitting Google with a record $2.7 billion fine for violating antitrust rules. The Technology Select Sector SPDR ETF (XLK) fell below the 8-month rising trend line, down 1.64 percent to 55.08 – its lowest closing price since May. Now the question is whether this is a pause that refresh or a beginning of something worse? According to our “U.S. Market Trading Map”, there could be more pains ahead for the ETF. Below is an update look at a trade in XLK.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. 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.

TechnologySPDRETF_20170627

Chart 1.2 – Technology Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLK bars in yellow (neutral). After carved out an all-time high in early June, XLK rolled over. Tuesday’s massive selloff pushed the ETF below November rising trend line, signified a bearish breakout. Breadth is not favorable over the near to intermediate term as…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.