FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP500 Technology ETF (XLK): The Apple Experiment?
 September 26 2016 ​( From TradingView  )
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The Technology Sector ETF is at a Major Technical Crossroads after
reaching a new high in this cycle (on September 22 at 47.97).
That good performance coms from ​a Breakout on July 20 2016.

​(See First Chart Below - Grey Trendline - Ellipse).​


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

​1) The XLK ETF is now at 13.6% from its bottom reached on June 27 ​
​2016 (post Brexit low) ​​and SP500 Index (SPY ETF) is at only 8.7%​​​​.

​Apple Shares are up +23.2% since June 27.

​​​2) The XLK ETF from highest peak price (reached on September 22 2016) to ​the ​lowest ​price yet this year (reached on ​January 20 2016) was 20.7% ​and only ​17.6% for ​the Mighty SPY ETF and 23.0% for Apple Shares.

3) The ​XLK ETF is at +8.9% above the 200 DMA (Day Moving Average) zone. ​​(See first chart below - Green Line - Ellipse)
​and SPY ETF is only at +4.8% and Apple Shares a tiny +10.5% above the 200 DMA.

4) On a relative basis (the ratio of XLK ETF ​to the Mighty SPY ETF), we are back testing a Trendline that started back since December 1 2015 (from overbought zone) and still above the 200 DMA. ​​(See second chart below - Red Trendline - Ellipse)​ We are also back within a stepp rising wedge from overbought territory.

5) On a relative basis (the ratio of XLK ETF ​to Apple Shares Price), we broke on September 13 a Support Trendline from an Uptrend Channel that started back since July 22 2015, so Apple out performing strongly since then. ​​(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 were coming off from an overbought zone. ​(See fourth chart below - Bollinger Bands% - Bottom Panel)​

​​​​​​​​The Information Technology weighting within the SPDR SP500 ETF ​is ​21.20%. Apple Shares are 3.28% of the SPY ETF but a heavy 13.74% 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.

​​After a Strong Breakout on Sept 13, Apple Shares reached quite soon - Sept 15 (according to the Bollinger Band  % ) 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 seasonality are turning bearish (from the past 10 years) from September 22 to October 5. So expect also some consolidation to the ​Technology Sector ETF XLK. Welcome to the Apple Experiment...






​​​​​
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