Technology stalling out near August highs, which could result in minor consolidation

Technical Strategy Video (Recorded Tuesday, October 26th):

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • Technology looks to be stalling near resistance at highs from late August, which resulted in US indices pulling back from intra-day highs 
  • DeMark indicators like TD Sequential are one trading session away from completing TD Sell Setups, which could result in temporary consolidation for US indices
  • US Dollar index’s turn back to multi-day highs puts this rally back on track; DXY likely to rally to 95-95.50 into November

SPX formed a “shooting star” pattern for the first time since early October on this run-up. This can allow for temporary consolidation and/or minor weakness before this rally continues

Expect possible 2-3 day pullback might materialize but nothing more serious at this time.

The video in this report is only accessible to members

Technology looks to have found strong resistance near late August 2021 highs

Daily charts of Invesco’s Equal-weighted Technology ETF (RYT) which is a better suited gauge for viewing Technology as a whole than XLK, has stalled out over the last few days near late August highs. Tuesday brought about meaningful pullback from earlier highs. It looks likely that we’ll see a bit of stalling in Technology in the d...

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