Technology Crossroads:  

When we look at some of the biggest major S&P sector ETFs in the XLK and XLY, both have done not too much on a YTD basis. And interestingly both, which are very top-heavy, have had one of the top two components holding it back. The XLK, which is essentially UNCH YTD, was held hostage by TSLA (that names feel like it is bottoming) as AMZN forged ahead, and the chart below of the XLK has been hampered by AAPL, as MSFT did most of the heavy lifting. Now we know Apple REPORTS Thursday after the close and it has made some big countertrend moves and this will obviously, have a big influence on the XLK. Its WEEKLY chart has recorded two rare gravestone doji candles near the very round 200 number, the second being the middle candle in an evening star pattern (it recorded one also in the summer of 2022 and each one a very good signal of weakness ahead). A 10% haircut after earnings would be roughly a visit to the 200 WEEK SMA where it has touched in some time. The XLK chart below looks like it may at least stall here at the 21-day EMA before the well-anticipated number on 5/2.

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