XLK Technology Sector: Signals of DivergenceAs the growth sector #XLK and #NDX makes lower lows there are spots of divergence displaying, which could pose as some upward impulses this week. In that case it could help to normalize a temporary ‘higher low’ in terms of the holistic outlook.
My TradingView charts (found at #bsdvs23) have mostly been bearish across the board with a few ‘potential’ bullish intraday traders here-and-there based on the broader technical structure. But that is neither here nor there since the major outlook of the trends is what is most important.
All that being said, signs of divergence are now signaling that this area of ‘the higher low’ (big picture) could be setting up for the next leg upward impulse movement in an effort of retesting the lower highs. Granted this will take ‘time and price’ to get to that level and coincidentally coincides with the major earnings session upon us.
And I should point out the bearish side of things as well to ensure the audience has the perspective of both sides here. The downside risk is the markets heading for those March lows. Something I have been very focused on the entire month of April in my YouTube videos, Facebook posts, and postings within TradingView.
All-in-all, divergence is poking its head and that should provide caution to the wind for the bears.
We will keep watch and monitor the Futures Markets as well as the sector spiders and other stocks for turning points going into the economic events this week as I will notate those below.
Mon, Apr 18
- 10:00am NAHB Housing Market Index
- Day 1 IMF Meetings
- 4:00pm FOMC Member Bullard Speaks
Tue, Apr 19
- 8:30am Building Permits
- Housing Starts
- Day 2 IMF Meetings
Wed, Apr 20
- 10:00am Existing Home Sales
- Day 3 IMF Meetings
- 10:30am Crude Oil Inventories
- 2:00pm Beige Book
Thu, Apr 21
- 8:30am Philly Fed Manufacturing Index
- Unemployment Claims
- 10:00am CB Leading Index
- Day 4 IMF Meetings
- 10:30am Natural Gas Storage
- 1:00pm Fed Chair Powell Speaks
Fri, Apr 22
- 9:45am Flash Manufacturing PMI
- Flash Services PMI
