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 TECHNICALS
SP500 Technology Bull% Index: The 200 DMA Experiment ?
 October 13 ​( From Stockcharts  )
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The Situation

​​​The main technical indicators like the moving average of the Bullish
​Percentage ​Index ​of the Technology Sector are turning with the most
​bullish conviction ​since ​June 26 2015 as shown by the chart below.


That % indicator on Technology Stocks ( spot index ) is at a level
​of 62.16% ​treshold and almost reached the 200 DMA ( Day Moving
​Average ) at 62.23%. ​It is getting into ​the ​overbought level as
​history suggest. See chart below.

​​The Information Technology weighting within the SPDR SP500 ETF ​is ​20.4%. Not Surprise to see that
​continued rise in Sentiment and price of the Technology Sector pushed the Mighty SP500 on a Bullish Trend Lately. ( Bottom Chart Thick Black Line ).


Observe that at a time when the Bullish ​Percentage ​Index ​of the Technology Sector reached the 200 DMA, the XLK ETF also is testing the 200 DMA at the 41.48 zone ( closing price on October 12 was 41.53 ) as you may see​ in the second chart below... ( Red Trendline )

But the most interesting technical factor is that at the time when it reached the 200 DMA, XLK ETF and the Mighty SP500 are testing the Resistance Trendline for an Upward Channel. All planets are aligned...
​( See charts below - SP500 Middle Panel - XLK ETF Bottom Panel ).






​​​​​
SP500 Technology Bull% Index: The 200 DMA Experiment ?  $SPY, $XLK  ​​​#trading  ​​​#xlk ​​​#sp500
SP500 Technology Bullish % Index ( Top Panel - Dots - Red Line )
7 DMA ( Blue Line )
200 DMA ( Red Line )​
SP500 Index ( Middle - Panel Black Line )​
XLK ETF ( Bottom Panel )
50 DMA ( Blue Line )​
200 DMA ( Red Line )​​​​

Financialiceberg.com
Financialiceberg.com