“Communicating” Bullish:

The communication services group has been holding its own in 2021 thus far, as it is the third-best major S&P sector out of 11, trailing just energy and financials. The XLC trades 4% off most recent all time highs, and is looking to possibly complete a bullish 3 weeks tight pattern depending on Fridays CLOSE. Many associate the strength in the space to the top components in the ETF such as FB and GOOGL. Facebook was rejected hard at the very round 300 number, which could be a double top from last summer. Google trades a bit more taut than FB, but strength within the sector has come from an unlikely source. The publishing and media agency plays, with NWS up nearly 200% since last years March meltdown. NLSN is up 88% over the last one-year period too. The group was being buoyed by internet names like PINS SNAP and TWTR, but each of these names are well into bear market mode off more than 20% from most recent 52 week highs. SNAP has the look of a bearish head and shoulders formation with a neckline near the rough round 50 number. Stock selection remains key in this slippery market environment.

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