Beach Ball Held Underwater Effect?
Software continues to do its thing as uptrends tend to have a way to last longer than we think. And we know they are more likely to persist than they are to reverse. Is software on the verge of another robust move higher? On the chart below the pattern is very bullish and many will still declare that it is the big names keeping the IGV afloat. But to be fair we have seen many others in the space flourish including SNPS ACN CDNS TEAM DDOG and MANH to name a few. Sure there will be names in August that have fell flat on their faces such as ZEN FICO APPS FROG and QTWO. As a whole, the software group is shining and keep in mind the IGV acted admirably this week with top ten holdings SNAP ATVI and ZM all lagging (Zoom is now 43% off most recent 52 week highs and failed at the very round 400 figure in both July and August). And let us give some respect to the overall technology sector, as for the first time in a while the XLK was on consecutive sessions the best major S&P sector this Thursday and Friday. With such a small sample size it is hard to call that even nascent, but we know once this group gets hot it can fun. Should be an interesting fall.