Pick Your Bias:

Software no question has recorded a stellar 2023 thus far up 39% via the IGV. It pales somewhat in comparison to the SMH which has gained 55% this year, but give them both a very firm pat on the back. The WEEKLY chart of the IGV below could be setting up a powerful 3-week tight pattern, where 3 consecutive weeks all CLOSE within 1% of each other. The last 2 CLOSED incredibly taut, less than .30 from each other, and this week is in the vicinity. Bulls will get excited if that occurs tomorrow, but bears may point to last week’s bearish shooting star candle, which finished more than 3% off its intraweek high. Top-holding ADBE is staying above the bull flag breakout at the very round 500 number, and MSFT is one to watch here as it is now lower 5 of the last 7 sessions and is now below its 21-day EMA which is curling lower all of a sudden. The problem with the bull case is the high of the last 3 weeks must be taken out, which would be above 371.66. With the nascent rotation out of tech, it may be a lot to ask for. Stay tuned, as we know anything can happen.

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