Spot The Change?
The overall software group continues to try and mount a comeback from the 9/2 highs. The process is slowing and if the IGV does not trade higher in quick fashion, the charts pattern is taking on the complexion of a bear flag. Keep in mind the ETF was weak even in the face of a very hyped up, recognizable IPO in Snowflake. One has to wonder if we will look back on this session and say that was significant in forming a top for the group. I personally do not believe so, but the 300 number which was resistance in July and August for IGV, must now hold as support. SHOP is feeling the weight of round number theory, with a bear flag of its own, as the round 900 number gave way today. If it does not a potential 250 handle measured move lower could be in store. DOCU is now 32% off its most recent highs. Below is the chart of SPOT which did record a pretty good bounce off 220. Previously it broke above a bull flag right at the 200 number, and todays intraday low could prove valuable if it holds, for a rally into year end and a move back toward 300, as a double bottom takes shape.