Click to Enlarge Technology stocks as measured by the Select Sector Technology
SPDR (NYSE: XLK ) are at a major resistance point and flirting with a breakout
above a five-year resistance line. The XLK exchange-traded fund has rallied
almost 100% off the early 2009 bottom and 8.2% since the Dec. 20 lows. That now
brings the XLK right to the top of the multi-year downtrend resistance and 2011
resistance line, currently at $26.70. Click to Enlarge Given how far stocks have
rallied during the past month, it is likely equities will take a little breather
here before ultimately heading somewhat higher and leading to a truer breakout
in the XLK. Last nights earnings announcements out of Microsoft (NASDAQ: MSFT ),
Intel (NASDAQ: INTC ), Google (NASDAQ: GOOG ) and others have the technology
sector trading mixed today and stalling somewhat. Should the broader market
along with technology enjoy a little breather in coming days/weeks, we would be
wise to watch the price action closely. A healthy correction should then
eventually lead to a breakout in the XLK a major tell worth taking note of for
large-cap technology stocks.
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