Chart of the Day - Wednesday, October 19th, 2022
October 19, 2022
Today’s Chart of the Day was shared by Larry Thompson (@HostileCharts). It's a daily candlestick chart of the Technology sector ($XLK) over the past year. Tech represents more than 25% of the S&P 500, making it the largest sector by a mile. It's currently down more than 31% from its peak, which is about the same as its Covid drawdown. Even with the recent bounce, Tech remains structurally damaged. Larry points out that it's been unable to reclaim its June lows, around $121. Momentum is diverging positively, but it's really all about those June lows. Keep an eye on how price behaves at that key level in the near term.