Expect Techs to Pause, Then Push Ahead

XLK is up against a major resistance point

   

XLKDaily 300x214 Expect Techs to Pause, Then Push Ahead
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Technology stocks as measured by the Select Sector Technology SPDR (NYSE:XLK) are at a major resistance point and flirting with a breakout above a five-year resistance line.

The XLK exchange-traded fund has rallied almost 100% off the early 2009 bottom and 8.2% since the Dec. 20 lows. That now brings the XLK right to the top of the multi-year downtrend resistance and 2011 resistance line, currently at $26.70.

XLKWeekly 300x214 Expect Techs to Pause, Then Push Ahead
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Given how far stocks have rallied during the past month, it is likely equities will take a little breather here before ultimately heading somewhat higher and leading to a truer breakout in the XLK.

Last night’s earnings announcements out of Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Google (NASDAQ:GOOG) and others have the technology sector trading mixed today and stalling somewhat. Should the broader market along with technology enjoy a little breather in coming days/weeks, we would be wise to watch the price action closely. A healthy correction should then eventually lead to a breakout in the XLK — a major tell worth taking note of for large-cap technology stocks.


Article printed from InvestorPlace Media, http://investorplace.com/2012/01/technology-stocks-spdr-xlk-msft-intc-goog/.

©2014 InvestorPlace Media, LLC

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