FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP500 Technology ETF (XLK): The Apple Experiment?
 August 02 2016 ​( From TradingView  )
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The Situation

The Technology Sector ETF is at a Major Technical Crossroads after
a Breakout on July 20 2016. (See First Chart Below - Grey Trendline - Ellipse).​
But also because the Bullish Percent Sentiment Index reached on
​August 1 the 80.8% level, the highest reading since April 6 2016.

​​​​Here is some Technical Observations:​​​

​1) The XLK ETF is now at 12.8% from its bottom reached on June 27 ​
​2016 (post Brexit low) ​​and SP500 Index (SPY ETF) is at only 9.2%​​​​.

​Apple Shares are up +15.9% since June 27.

​​​2) The XLK ETF from highest peak price (reached on August 1 2016) to ​the ​lowest ​price yet this year (reached on ​January 20 2016) was 22.6% ​and only ​20.2% for ​the Mighty SPY ETF and 20.4% for Apple Shares.

3) The ​XLK ETF is at +8.4% above the 200 DMA (Day Moving Average) zone. ​​(See first chart below - Green Line - Ellipse)
​and SPY ETF is only at +6.2% and Apple Shares a tiny +2.3% above the 200 DMA.

4) On a relative basis (the ratio of XLK ETF ​to the Mighty SPY ETF), we broke a Resistance Trendline that started back since January 7 2016 and above the 200 DMA. ​​(See second chart below - Grey Trendline - Ellipse)​

5) On a relative basis (the ratio of XLK ETF ​to Apple Shares Price), we broke a tiny Support Trendline from an that started back since May 26 2016, so Apple out performing. ​​(See third chart below - Blue Trendline - Ellipse)​

6) But the real interesting part is that at a time XLK is making a new high price ever, Apple Shares Price are near a Major Resistance Trendline. ​(See fourth chart below - Amber Trendline - Ellipse)​

​​​​​​​​The Information Technology weighting within the SPDR SP500 ETF ​is ​20.59%. Apple Shares are 3.03% of the SPY ETF but a heavy 12.91% of the XLK ETF. Not Surprise to see that strenght lately on the Technology Sector as Apple Shares are in an upmove and pushing that ETF tremendously.

​​But Apple Shares reached the Resistance of an Uptrend Channel on August 1 but most importantly, the Bollinger Band % reached the Overbought Zone which is associated as history s
uggest of a potential reversal risk for Apple Shares and the XLK ETF.
​​ ​
(See Fourth Chart Below - Top Panel - Amber Vertical Lines: Bottom Panel - Bollinger Band % - Blue Line) 

Apple Shares are so close of a Major Breakout (See Fourth Chart below - Amber Trendline) and Bulls need to stay above the 200 DMA at all costs.​The ​Technology Sector ETF XLK is obviously at Technical Crossroads as the Apple Experiment battle is on.






​​​​​
SP500 Technology ETF (XLK): The Apple Experiment?  $SPY, $XLK, $AAPL ​​​#aapl ​​​#xlk ​​​#sp500
Technology Sector Fund ETF XLK  ​( Daiy Candles )
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )

Financialiceberg.com
Daily RATIO ( Candles )
Technology Sector Fund ETF XLK ​
over​
​SP500 Index ​( SPY ETF )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​

Financialiceberg.com
Daily RATIO ( Candles )
Technology Sector Fund ETF XLK ​
over​
​Apple Shares
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​

Financialiceberg.com
Top Panel - Apple Shares  ​( Daiy Candles )
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )
Bottom Panel - Bollinger Band in % ( Blue Line )​

Financialiceberg.com