IYZ telecom weekly chart confirms the weakness over the last few days. IYZ is now coming off overbot levels and the rising wedge and negative divergence also helped kick off the bearishness this week. Price broke up and out of the long term ascending triangle when the Fed announced QE2 in late August 2010. This breakout targeted 23.75, exactly where it sits now, so the ascending triangle pattern is satisfied.
Since the daily and weekly charts agree with negative divergence across all indicators, IYZ is in big trouble right now and further selling is expected. This makes one wonder about all the positive hype surrounding smart phones and tablets as well as the significance of IYZ as a leading indicator for the overall broad markets. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
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