Inviting Long-Term Look:
Technology is assuming leadership as we head into the final stretch of 2023. On a YTD basis, the XLK is now less than 1 percentage point behind communication services for the top spot (that group essentially is technology). After the ETF jumped almost 7% last week it is now tacking on another 2% this week heading into Wednesday. The WEEKLY chart below shows a break above a bull flag pivot through the 170 figure. Of course, it needs to CLOSE above that level on Friday. The likelihood of this being a double top with the first week of 2022’s completion of a WEEKLY evening star, which prompted a 60-handle decline, is less and less with each passing week. MSFT is now just 2% off all-time highs and AAPL is now 8% off its most recent 52-week highs and is acting well POST breakout from a bullish falling wedge. NVDA is the third largest holding in the fund, albeit at just 4.5%, but it is carving out a double bottom pattern after the bear trap below the very round 400 number and the bearish head and shoulders formation breakdown.