Always consider hidden risks
SP500 Technology Bull% Index: The Apple Experiment - AAPL ?
October 28 ( From Stockcharts )
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The main technical indicators like the moving average of the Bullish
Percentage Index of the Technology Sector are turning almost near
the more bullish conviction since August 24 2015 as shown by
the chart below.
That % indicator on Technology Stocks 7 DMA is at a level of 73.94%
treshold last seen in April 2015 ( spot index now at 79.73%); it is
getting into the overbought level as history suggest. See chart below.
The Information Technology weighting within the SPDR SP500 ETF
is 20.96% and Apple Shares are 3.71%. Not Surprise to see that continued rise in Sentiment on the Technology Sector as Apple Shares are in an up move since since October 1 2015. ( Chart Below Thick Black Line ).
Observe the correlation between the XLK ETF and Apple Shares; all previous peak in the Technology Sector have been within a high correlation zone as you may see in the chart below, bottom panel - ellipses...
Also, the XLK Sector broke on the upside the on October 22 at 42.50 the resistance trendline that started back on October 15 2014. Bulls need to protect that Trendline - now at 42.59 ( Bottom Chart - Blue TrendLine - Ellipse ).
SP500 Technology Bull% Index: The Apple Experiment - AAPL ? $SPY, $XLK, $AAPL #aapl #xlk #sp500
SP500 Technology Bullish % Index ( Top Panel - Dots - Red Line )
7 DMA ( Blue Line )
XLK ETF ( Middle Panel )
Apple Shares Correlation with XLK ( Bottom Panel )
XLK ETF ( Daily Candles - Right Scale )
Apple Shares - AAPL ( Grey Area Line - Left Scale )