We are continuing to watch the technology sector (XLK) as we have a potential bull flag on the weekly time frame and a cup and handle scenario that could play out. Our 4 and 8 exponential moving averages are currently support as well as the middle Bollinger band. After the all time high in March we have had healthy consolidation and after a missed attempt to break the all time high we now are consolidating into what could be the handle of a cup and handle pattern. A new all time high would see a bullish MACD cross on the weekly time frame as well.
Weekly Chart:
