2024-06-25 05:10:07 ET
Summary
- Technology sector has outperformed since October '23, but recently saw extreme divergence with a gain of over 9% while other sectors dropped.
- XLK underwent quarterly rebalancing, reducing Apple's weight while increasing Nvidia's, leading to instability in the sector.
- XLK's correction may stabilize, with key levels at $221.95 and $217.72 determining future momentum.
Technology ( XLK ) has outperformed since October '23, but recently the divergence between XLK and the rest of the sectors got extreme. This is how the 1-month performance of the 11 SPDR Select Sectors looked mid-way through last week....
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For further details see:
XLK: The Rebalancing Reversal