SPDR Sectors Rolling Down as Anomaly Event Sets UpSPDR sectors appear to be forming a Head-n-shoulders pattern after the US elections.
It appears the markets are stalling into a congestion phase - possibly leading to my Anomaly breakdown event.
This video will help you understand how the financial and real estate sectors could collapse to deflate the current market trend.
Get some.
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XLK
Analyzing Sector Dynamics and Momentum ShiftsIntroduction:
The performance ratio between the communications sector (XLC) and the technology sector (XLK) highlights two of the market's leading sectors, both of which feature overlapping companies. While XLC has been a strong performer for much of the year, it has recently shown signs of weakness, even lagging behind traditionally defensive sectors like utilities. Historically, technology has maintained more consistent strength compared to communications.
Analysis:
Sector Comparison: The XLC-to-XLK ratio helps gauge the relative momentum between these two sectors. Recent weakness in XLC, paired with XLK’s historical stability, suggests a shift in relative strength back toward technology.
Rectangle Pattern: Currently, the XLC-to-XLK ratio displays a rectangle formation, which hints at a potential continuation of the downtrend should the ratio break below the rectangle’s lower trendline. This pattern could indicate that XLC’s outperformance may have peaked for now.
Momentum Shift: Although XLC has shown some recent underperformance, any shift in momentum away from communications is likely to be gradual rather than abrupt, given the current technical setup.
Conclusion:
The relative performance of XLC and XLK is crucial for understanding current sector dynamics and where momentum may be shifting. While technology remains robust, the recent pattern in the XLC-to-XLK ratio suggests a possible weakening in communications. Traders should watch for a break below the rectangle pattern to confirm a continuation of the downtrend. What’s your view on the XLC-to-XLK relationship? Share your thoughts below!
Charts: (Include relevant charts showing the XLC-to-XLK ratio, the rectangle formation, and the potential breakout areas)
Tags: #Communications #Technology #SectorAnalysis #XLC #XLK #TechnicalPatterns
Energy vs Tech : Analyzing Sector Performance and Market TrendsIntroduction:
The comparison between the energy sector (XLE) and the technology sector (XLK) provides valuable insights into current market trends. As the largest sector in the S&P 500, XLK often serves as a barometer for broader market strength. Conversely, when XLE outperforms XLK, it may signal caution, as XLE's smaller size limits its impact on the overall index.
Analysis:
Sector Comparison: XLK's performance is crucial in indicating market health. When XLK outperforms, it generally suggests a robust market outlook. On the other hand, if XLE starts to outperform XLK, this may indicate potential weakness in broader market conditions.
Inflationary Pressures: This ratio between XLE and XLK also reflects inflationary trends. A strong performance from XLE relative to XLK may signal rising inflationary pressures, which investors should closely monitor.
Charting the Pattern: The energy sector has formed an inverted saucer pattern. A breakout from this pattern could signify a positive upward trend and possibly a return to inflation.
Trade Setup:
Entry Point: Monitor the XLE/XLK ratio for a potential breakout confirmation.
Stop Loss: Consider setting a stop loss below the recent support level identified on the chart.
Target Price: Set a target based on the measured move from the breakout point of the inverted saucer pattern.
Conclusion:
The comparative performance of XLE and XLK offers essential insights into market dynamics and inflationary pressures. Traders should keep an eye on the potential breakout from the inverted saucer pattern in XLE, as it may indicate a shift in market trends. What are your thoughts on this analysis? Share your insights in the comments!
Charts: (Include relevant charts showing the XLE/XLK ratio and the inverted saucer pattern)
#Energy #Technology #MarketTrends #Inflation #XLE #XLK
E.L.E.2Just another day at the office...
Plotting the SPX median line shows something quite ordinary.
No problem is apparent. All is well in the financial markets.
Classic candle charts hide the truth, as I have many times explained.
SPX now prints a bear 2M bar on the 3-line-break chart.
This simply means that a bearish engulfing has taken place on a significantly large timeframe.
These things come up rarely. They must not be ignored.
... Extinction Level Event 2
On the main chart we see a massive RSI divergence taking shape.
Coupled with a massive bearish engulfing, fear is beginning to hit.
Too much has accumulated in Big Tech. (Notice the bull confirmation)
SPX Democracy is at a multi-year low.
The XLK vs SPY ratio has reached the 2000 levels. (Notice the bear confirmation)
The .com bubble burst is coming again.
No big stock is safe from this event...
MSFT
META
There is really no point showing more. If you get it, you get it.
Mayday Mayday Mayday
Brace for impact
XLK vs SPY shows key break throughThe tech sectors sell off we experienced over the past month looks to be coming to a close
In multiple tech giant ETFS (XLK and SMH) are seeing breakthoughs of the past months violent sell off
comparing XLK/SPY we see that the recent downtrend has broken
The pair setup had reached level of support which it hit this time last year
Since September is typically a rough month we should not expect any big rallies during the next month or so.
Do not expect any rally to start until atleast October possibly early November
Anticipate market trades flat overall for next month or so.
🔥🚀 **NVDA Update 27 May Gap Up Mania or Brief Correction! ** On Thursday, NVDA skyrocketed, smashing through the roof with a new high of 1063.13! By Friday, it closed above the last swing high at 1064.89, signalling a strong continuation of the bullish trend.
Investors are eagerly gearing up for a thrilling Tuesday, anticipating powerful moves ahead. Two exciting scenarios could unfold:
1️⃣ **Gap Up Mania!** 🌟 - With market sentiment glowing with positivity, we might see another gap up, potentially pushing the price to a staggering 1134, mirroring the previous exhilarating gap.
2️⃣ **Bullish Correction!** 📉➡️📈 - Alternatively, a brief correction to 1032 could set the stage for an even stronger uptrend.
The RRG analysis is buzzing with optimism, showing the XLK and SMH sectors in the leading quadrant.
Conclusion:
Get ready!! because NVDA is poised for an electrifying ride! 🌟📈💥
Insights into Market Analysis: SPDR XLK Sector trend analysisThe upward trend of XLK experienced a halt in mid-April, marked by a price breakout below the swing low at $197.3. By retracing the price action from January 2022 to October 13, 2022, a potential pattern emerges, suggesting the formation of a 'Head & Shoulders' reversal pattern.
XLK had been on an upward trajectory from October 2022 until April 2024, largely driven by the robust performance of the tech sector. However, with the application of sector rotation principles, it appears that XLK is exhibiting signs of technical weakness. Currently, other sectors such as XLE and XLU are demonstrating stronger performance compared to the overall market.
Stock Market Analysis - Bullish & Bearish Sectors Heavy selling observed across the S&P500: Financials & Real Estate hit hard.
S&P500 hitting the 50 day MA...technical daily support.
Some breakout sectors are seeing there first pullback in a bullish trend.
The sectors that have had breakouts will likely see dip buyers.
Health Care & Utilities are into some interesting support levels. This is where bulls step in.
Megacap Tech still saw some flight to safety money! Lets see if this holds.
So goes Apple so goes the market? The old wall street adage! so goes apple....
Were at a pretty interesting level.
Are market makers going to make this breakdown in apple easy?
A head & shoulders breakdown is now on watch for a confirmed break.
This does imply a decent down move and will undoubtedly weigh on markets if it happens.
Keep an eye on the second largest company in the world.
Sector Rotation Before CPI (SPY, QQQ)Clear sector rotation has been observed a day before CPI data release on Tuesday morning. It seems traders are getting out of Technology ( AMEX:XLK ) stocks and defensive sectors like Utilities ( AMEX:XLU ), Basic Materials ( AMEX:XLB ) as well as Industrials ( AMEX:XLI ) have been climbing up.
HIGHLIGHT:
The chart depicts S&P 500 ETF ( AMEX:SPY ) along with a ranking of all the major sectors at the bottom of the chart in an hourly setup. During the final hours of the last trading day (Monday) there has been a sharp sell-off of tech stocks as the industrials and basic materials have climbed up in strength.
A slow decline in Health Care ( AMEX:XLV ) and gradual rise in Financials ( AMEX:XLF ) over last few days have also been observed.
Please note that the first CPI of the year (January) usually creates volatility in the market. Which has also been observed in above 3% rise in the Volatility Index ( CBOE:VIX / AMEX:UVXY ) looking into the CPI release.
s3.tradingview.com
Carefull tech here comes industrialsProvides online manufacturing services which enable manufactured custom parts to be sold via xometry.com
NASDAQ:XMTR is forming a base just after it broke out a polarity zone around $30
The AMEX:XLI is making new highs along with AMEX:XLK and AMEX:XLC but the leaders are showing signs of exhaustion and some rotation to small cap might be underway
The AMEX:IWO is close of breaking out of a huge base
Lets wait and see!
The Mute SpeakerPrices never lie. Price is everything.
Time however always lies. That's "Theory of Relativity 101".
Time stretches and narrows based on boredom, psychology, speed.
By taking time out of the equation we transform a news piece into a literature book.
Timeless charts are the past, the present and the future.
They don't expire.
Unlike candles with specific expiration date.
Linebreak charts are a portal into the Minecraft world.
They serve an important purpose. To dictate/confirm price trends/movements.
To see these charts, you must imagine them.
We live inside a fake time dimension. We cannot escape it, just like pacmac cannot escape its 2D world. The only thing we can do is image an eternal time.
Imagine a future of expensive oil.
Imagine an eternal oligarchy of the Big Coin ...
... and the Big Brands.
The few (DJI) shall beat the many (SPX).
China has become a parasite on its territories.
Let us welcome the US Industrial Revolution ...
... and the rebirth of the Japanese economy
Imagine all the people.
Tread lightly, for this is blocky ground.
-Father Stevegory.
Tech stock Vs Energy stocks. The Competition for Decades This is an education-style publication where the main graph is a comparison (ratio) between two ETFs (funds) managed by State Street Global Advisors Corporation, the creator of the world’s first ETF (well-known in nowadays as AMEX:SPY ) and an indexing pioneer.
The first one ETF is The Technology Select Sector SPDR Fund, AMEX:XLK .
👉 AMEX:XLK seeks to provide investment results that provide an effective representation of the Technology sector of the S&P 500 Index SP:SPX .
👉 AMEX:XLK seeks to provide precise exposure to companies from Technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components.
👉 AMEX:XLK is a place where securities of American World-known Technology companies like Apple Inc. NASDAQ:AAPL and Microsoft Corp. NASDAQ:MSFT , like Nvidia Corp. NASDAQ:NVDA and American Micro Devices NASDAQ:AMD , like Cisco Systems Inc. NASDAQ:CSCO and Adobe Inc. NASDAQ:ADBE meet together.
👉 In contrast with other Technology-related ETFs like NASDAQ:QQQ (Invesco Nasdaq 100 Index ETF) or NASDAQ:ONEQ (Fidelity Nasdaq Composite Index ETF), stocks allocation in AMEX:XLK depends not only on their market capitalization, but also hugely on Technology industry allocation (like software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment, IT services, communications equipment, electronic equipment instruments & components).
That is why allocation of Top 3 holdings in AMEX:XLK ( Microsoft Corp. NASDAQ:MSFT , Apple Inc. NASDAQ:AAPL and Broadcom Inc. NASDAQ:AVGO ) prevails 50 percent of Funds assets under management.
👉 Typically AMEX:XLK holdings are Growth investing stocks.
The second one ETF is The Energy Select Sector SPDR Fund, AMEX:XLE .
👉 AMEX:XLE seeks to provide investment results that provide an effective representation of the energy sector of the S&P 500 Index SP:SPX .
👉 AMEX:XLE seeks to provide precise exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries.
👉 AMEX:XLE allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing.
👉 AMEX:XLE is a place where stocks of American World-known Oil companies like Exxon Mobil Corp. NYSE:XOM and Chevron Corp. NYSE:CVX , like EOG Resources Corp. NYSE:EOG and ConocoPhillips NYSE:COP , like Valero Energy Corp. NYSE:VLO and Phillips 66 NYSE:PSX meet each other.
👉 Weight of Top 3 holdings in AMEX:XLE (Exxon Mobil Corp. NYSE:XOM , Chevron Corp. NYSE:CVX and EOG Resources Corp. NYSE:EOG ) prevails 45 percent of Funds assets under management.
👉 Typically AMEX:XLE holdings are Value investing stocks.
The main graph represents different stock market stages of work
🔁 Early 2000s, or post Dot-com Bubble stage, that can be characterized as Energy Superiority Era. There were no solid Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR were huge like nowadays. Crude oil prices TVC:UKOIL , TVC:USOIL jumped as much as $150 per barrel.
The ratio between AMEX:XLK and AMEX:XLE funds collapsed more than in 10 times over this stage.
🔁 Late 2000s to early 2010s, or post Housing Bubble stage, that can be characterized as a Beginning of Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR turned lower. Bitcoin born.
The ratio between AMEX:XLK and AMEX:XLE funds hit the bottom.
🔁 Late 2010s to early 2020s, or post Brexit stage, that can be characterized as a Continuation of Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR turned to Zero or so. Crude oil turned to Negative prices in April 2020 while Bitcoin hit almost $70,000 per coin in 2021.
Ben Bernanke (14th Chairman of the Federal Reserve In office since Feb 1, 2006 until Jan 31, 2014) was awarded the 2022 Nobel Memorial Prize in Economic Sciences, jointly with Douglas Diamond and Philip H. Dybvig, "for research on banks and financial crises", "for bank failure research" and more specifically for his analysis of the Great Depression.
The ratio between AMEX:XLK and AMEX:XLE funds becomes great and respectively with monetary stimulus hit the all time high.
🔁 Early 2020s, or post Covid-19 Bubble stage, that specifically repeats early 2000s Energy Superiority Era. There is no again Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR are huge nowadays like many years ago. Commodities prices like Wheat CBOT:ZW1! , Cocoa ICEUS:CC1! , Coffee ICEUS:KC1! , Crude oil prices TVC:UKOIL , TVC:USOIL jump again to historical highs.
The ratio between AMEX:XLK and AMEX:XLE funds is fading to moderate levels that can be seen as 200-Month simple moving average.
💡 In a conclusion.. I wonder, how the history repeats itself.
This is all because markets are cyclical, and lessons of history always still remain unlearned.
💡 Author thanks PineCoders TradingView Community, especially to @disster PineCoder for its excellent and simple script Quantitative Easing Dates .
Based on this script, Easing Dates are highlighted at the graph.
Will communications $XLC lead the next leg up? In the last 6 months AMEX:XLC is the leading sector in the $SPX.
And with the recent sell of in the energy sector AMEX:XLE , communications is the only sector without lower lows.
There are various stocks that confirm this strength in AMEX:XLC , some are NASDAQ:MATH , NASDAQ:ATVI , NASDAQ:META , NASDAQ:CHTR and many others.
Let's wait and see.
XLK - Support DefendedBulls stepped up and bought the initial dip in XLK
If this market is to have nay chance at a rally, tech will need to participate.
So far we now have a weekly Dojo candle that allows us to trade against.
If a retrace lower occurs next week I anticipate buyers to step up unless Yields or the dollar have a significant move to the upside.
XLK - Bullish Weekly CrossFor the third time in XLK price history we have had a crossover of the 50 weekly MA & 100 Weekly MA.
the previous 2 times coming out of the Dot com crash and GFC when this happened it resulted in a quick multi week double digit rally.
Will this rally happened again?
XLK could rally while other aspects of the market rollover. Why? simply the cash moats of some of the Mega Cap companies insulate them more from rising yields.
Im expecting a bounce off the support level.