XLK Technology Sector Weekly Chart Visits Highs from 2001 -- Eleven Years Ago

XLK technology sector punched above the late 2007 highs to print numbers not seen since 2001, eleven years ago, during the ongoing dotcom melt down. One heck of an accomplishment after all these years. AAPL earnings probably helped with the final push. The Nasdaq, however, has not exceeded prior highs.

The higher high over the last year shown by the green line above comes with negative divergence (not shown). Thus, a down up down stutter step sideways move would be expected for XLK with price then rolling over. Projection is sideways to sideways down for the foreseeable future. Continue to watch the tech earnings releases to gauge the path forward for technology. This entire market rally has been led by the Nasdaq strength so watch for cracks in the technology sector to see if tech starts to lead the markets down. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.