Software Acting Anything But:
The software has been resolute during this market “selloff”. The IGV is now lower by just 2% from most recent all-time highs, and although it is lower by .8% headed into Friday this week it is still looking to CLOSE in the upper half of the WEEKLY range for the 13th time in the last 14 weeks. It is looking for its fifth consecutive WEEKLY close above the very round 400 number, with 4 of the last 5 weeks beneath the figure intraweek. The top 5 components in the ETF are all “old tech” plays making up 40% of the fund. Three of those five in ADBE MSFT and INTU are all trading right at all-time highs. We incessantly hear how many names are 20% off their 52-week highs, or how many are trading below their 200 day SMAs, the sheer force of these names is making them stick out and each are obviously garnering plenty of investor capital. It is absolutely critical in my view that this group’s uptrend remains technically intact.