Technology Trending higher

Overall markets still not completely out of the woods

The S&P 500 hit a recent low on the 1st of the month and then has mostly gone up straight by +4.4%. That is in 8 trading days and the upward trending seems to be back. And by the end of last week the S&P 500 managed to make an all-time high.

My model asks to wait for confirmation of the uptrend, and it is usually seen by either a 1-month high or the 10-day moving average crossing over the 20-day moving average. Right now, the first condition is satisfied while the second looks imminent.

Interestingly, both the conditions are met in the Technology sector seen through XLK. So, the technology sector may be the one that leads the markets back up this time.

Accordingly, I am long TECL which is the 3x leverage of the broader technology sector by Direxion. I am also long SOXL which is the 3x leverage of the semiconductor sector by Direxion. Note that the NASDAQ is not yet bullish though. So, my positions are small and still mostly awaiting confirmation.

Also, within the technology sector, the Big Tech stocks do not seem to be collectively doing well. Both FNGU and BULZ which are the 3x leverage of Big Tech by MicroSectors continue to trend bearish to neutral.

And more importantly, the Russell 2000 which forms one of the core markets, is still trending bearish. So, I do not see that the stock markets have really turned around all the way at all. It could be in the process but still some way to go before we can say all clear.