Strength in technology stocks as U.S. equities enjoy a bounce off their October lows looks like a breakout that signals the potential for strength into year-end, a technical analyst said Thursday.
“After a 12% correction from the July highs, the bears thought tech was finally cracking but the sector has come roaring back with a 10% rally off the lows while clearing levels of key resistance,” said Kevin Dempter, analyst at Renaissance Macro Research, in a note.
The Technology Select SPDR ETF
XLK
is breaking out above the downtrend in what technicians call a bullish flag pattern while the relative price makes new highs, Dempter said (see chart below).
Renaissance Macro Research
The sector is now…
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