The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Technology Sector Participation Is Fading

by admin June 7, 2024
June 7, 2024
Technology Sector Participation Is Fading

The Technology Sector (XLK) continues to dominate and drive the rally, but fewer and fewer stocks within the sector are participating in the rally. We know this because our Silver Cross Index (SCI), which shows the percent of stocks in the Technology Sector with Silver Cross BUY Signals (20-day EMA is above the 50-day EMA), is only at 54.60%. Almost half of the stocks are not on BUY Signals.

Further, looking at the seven years of data we have on the SCI (chart below), we were unable to find another case where XLK was making all-time highs with a Silver Cross Index reading so low that didn’t lead to price weakness. Of course, we owe this dislocation to the magic of cap-weighting. While fewer and fewer Technology stocks are participating in the rally, the mega-cap stocks are the ones making new highs, and driving up the price of every price index of which they are a component. The numerous negative divergences we can see are telling us that this probably won’t continue for long.

Conclusion: Participation within the Technology Sector has been fading since the beginning of the year. Mega-cap stocks are keeping prices elevated for now, but that probably won’t last.


Learn more about DecisionPoint.com:


Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!


Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 at checkout!


Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


(c) Copyright 2024 DecisionPoint.com


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


0
FacebookTwitterGoogle +Pinterest
previous post
GM CEO says commitment to all-electric fleet remains firm despite industry-wide sales slowdown
next post
Rules-Based Money Management – Part 8: Putting Trend-Following to Work

Related Posts

DP Trading Room: SPX Earnings Update

April 15, 2025

Why Now Might Be the Best Time to...

December 24, 2024

Key Support Levels for Gold

November 14, 2024

S&P 500 Equal Weight ETF Gains Strength

August 2, 2024

Is the Banking System on the Verge of...

April 11, 2024

Why the S&P 500 Going Sideways is the...

September 5, 2024

Recognize The New Leaders NOW!

September 1, 2024

Mega-Caps Weakening, More Trouble Ahead

February 22, 2025

Market Research and Analysis – Part 5: Drawdown...

April 12, 2024

Stock Market Today: Are Big Tech Growth Stocks...

September 12, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 10, 2025
    • Breakout Watch: One Stock in Each Sector to Watch Now

      July 10, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 10, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 10, 2025
    • Biden doctor dodges questions in speedy House closed-door interview

      July 10, 2025

    Categories

    • Business (1,287)
    • Politics (3,949)
    • Stocks (1,504)
    • Uncategorized (45)
    • World News (1,280)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved