XLK, US tech ETF: fresh Sell signal
XLK ETF closes flat (-0.3%) as a new Sell signal opens
XLK, US tech ETF: fresh Sell signal
Our view last week
XLK, the US technology sector ETF, closed the week almost flat (+0.2%), but underneath the tape cooled fast: 87% of volume traded on the sell side and the weekly MACD just crossed bearish. Seven days after a 5.5% drop, it is momentum losing ground now, not price. In our XLK technical analysis the long trade is still up 14%, with the double bottom in the 173 area still the key backdrop.
This week's summary
XLK, the US technology sector ETF, opens the week with a new Sell signal: price has returned to the 171 area already touched, but no session has defended it yet, so for now the move under way continues. The week closed almost flat, -0.3%, with two price action warnings - mixed rejection candles and an indecisive phase. Our XLK technical analysis flags one thing: the ETF is still 48.7% above its 200-week average, a level from which a fresh short is high-risk.
IQS Phase
56
ordinary
Signal Strength
17
decline starting to make lower lows
Sizing
MINIMUM
Ranking
#60 / 138
New us stocks
Trade P&L %
+0.00%
from signal to date, no stop loss
Rank position
ranks 60th among the 138 sell signals for US stocks in our ranking, with a signal strength of 17 out of 100.
Sector context
SectorETF Settoriale
Benchmark ETFXLK
Sector regimeweak phase
Performanceweekly -0.30% · monthly -5.53%
XLK belongs to the etf settoriale sector (reference ETF XLK). The sector is classified weak phase according to our weekly reading.
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