Technology Sector Review: 11/2/21

Technology via the XLK was one of just 2 of 11 major S&P sector performers that declined. I rarely look at the ETF as 50% off the fund is within the top 3 holdings in AAPL MSFT and to a lesser extent NVDA. AAPL may now be three sessions into putting a handle on its cup base, although it does need to firm up here above the 50 day SMA. MSFT has enjoyed a strong 14% combined gain during its current 4-week winning streak with all 4 CLOSING at the top of the WEEKLY range. Below is the chart and how it is hovering just above a cup base breakout. Looking deeper into the depths of tech the semis are having a nice run. They are beginning to outshine their hotter YTD cousins in the software space. Last week saw the SMH outperform the IGV, and to start this week the SMH rose 1.1% while the IGV fell .2% (IGV recorded a bearish engulfing candle on 10/26 and a move back toward double bottom breakout pivot of 423.13 taken out on 10/15 could be in the cards in the near term). Usually, the beginning of a month sees an injection of fresh capital into the markets, but today’s action was subdued, until a late-day mild rally. Perhaps everyone and their pet dog are aware of positive seasonality trends. We know markets do their best to confound the most and expect it to shake out weak holders into a probable strong year-end rally.