Chart of the Day - Thursday, June 27, 2024

🏆 Today’s Chart of the Day was shared by Shane Murphy (@murphycharts).

• The Technology Sector ($XLK) has been flat over the past two weeks, but there’s been a notable rotation beneath its surface. Software has perked up, while Semiconductors have cooled off.

• Software ($IGV) has lagged all year, while Semis drove Tech higher. However, $IGV is on track for its best month since November. $IGV built a potential top in the first half of the year, but the top failed recently. As we know, Failed Tops are often incredibly bullish.

• Shane points out that $IGV is completing a multi-year Cup & Handle pattern. The primary uptrend looks ready to resume if $IGV clears $90.

The takeaway: Despite lagging all year, Software ($IGV) has set the stage for a potential rally in the second half of the year.