Technology sector earnings remain fairly strong and there’s ample liquidity being provided by the US Federal Reserve, however it may be worth noting that the index trades 62% above it’s 200-week SMA. Prior extensions: +42% (Feb 2020) & 39% (Oct 2018). Should the index close at current levels or lower, the candle structure would be a ‘dark cloud cover’ as per the weekly chart. In addition, the weekly chart RSI has developed lower highs (negative divergence). While it may drift a few points higher, the risk to reward does not appear attractive from a buy/long perspective. Caution to those who are overly optimistic on US Technology shares. Last Close: 13337
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.