StockCharts TV on $XLK (Nov 4, 2026)
XLK has a smaller but ominous bearish pattern, has spent two days below the breakdown zone and targets 160-155. It could repeat the May-July reversal after the July 29 Fed meeting and help the S&P 500, but bad earnings reports leave unclear whether traders will act given the breakdown.
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Of course, the situation is similar with the XLK technology sector , but it looks slightly different. I see this as a smaller bearish pattern, but it is also ominous because it has spent the last two days below the breakdown zone, giving us a target between 160 and 155.
It is very similar to what we saw happening from May to July. Now, the key point, of course, is that two days after that crash, the market trend reversed . Again, this was the same Federal Reserve meeting on July 29 when the entire market reversed.
But that could happen again, and if the technology sector reverses upwards, that will obviously help the S &P 500 as a whole. So, can we trust this enough to say that we are not seeing bearish patterns materialize in XLK?
And when that happens, buyers step in . Yes, that was the case, but we've also seen a number of bad earnings reports over the past few days, so the question is how willing traders are to act before that news, given these bearish patterns that have already begun to break down.
What this channel has said about $XLK
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