The Selling Might Be Done For Now

By Graham Summers, MBA

Tech looks due for a bounce.

The Tech ETF (XLK) is at major support at $166. Even if this is not THE low, it’s a decent spot for a bounce as XLK rallies to $175 or so as it carves out a potential right shoulder in a Head and Shoulders pattern.

Moreover, the yield on the 10-Year U.S. Treasury is at major resistance. 

Tech is a long-duration play, meaning it is heavily affected by the yield on longer-term Treasuries. The odds of the yield on the 10-Year U.S. Treasury breaking above its current levels right here and now are not high. This suggests the next move for this yield would be down, which would alleviate some of the pressure on tech stocks.

Given that the S&P 500 is heavily weighted towards tech (the sector accounts for 28% of the index’s weight) all of the above items suggest a bounce in tech and the broader market here. Again, this is just a short-term idea.

In the big picture however, my proprietary Bull Market Trigger is about to register its first “buy” in over a decade.

This signal has only registered TWO times in the last 25 years: in 2003 and 2010. And it’s close to registering a new signal today,

If you’ve yet to take steps to prepare for invest accordingly, we have published an exclusive special report How to Time a Market Bottom.

It details the my proprietary bull market trigger, how stocks have performed following prior signals, and what it is stating right now.

Normally this report would be sold for $249. But we are making it FREE to anyone who joins our Daily Market Commentary Gains Pains & Capital.

To pick up your copy, swing by:

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Posted by Phoenix Capital Research