The XLKs are the main thing I'm watching this weekI think that the most important thing to watch in the equities market this week is the action in the Technology Sector...the XLKs.
They are testing an important resistance at the $71 level. This level is important because it was an all-time high in March, followed by a quick selloff. Then it became support throughout most of May.
If the XLKs fail here they will take the broader markets lower. This sector is the largest in the S&P 500 at 28%. As of right now they (11:31) they are trading just above it at $71.26, but they are off their highs. My guess is that they will roll over in the next few days but only time will tell.
I try not to be 'married' to an idea because I'm the first to admit that the market knows more than I do. I try hard to not have opinions and just to be an observer and let the markets tell me what to do, but as experienced traders know this is much easier said than done.
