Tech ETF at Key Inflection Point

A number of top holdings in the Technology Select Sector SPDR (XLK) are nearing important technical levels, and they are taking the technology exchange-traded fund to a key inflection point of its own.

Apple (AAPL) is the No. 1 holding of the XLK, with a 14% weighting. I alerted readers to the significance of the Fibonacci levels measured from the 2009 low to the 2012 high several times last month. The break below a long-term support line drawn off the lows since 2009 coincided with a break of the 38% retracement level, and I noted the stock was nearing a key inflection point as it approached the 50% retracement level of the long-term uptrend. It has since bounced off that level and returned to retest the 38% retracement level, but it is unclear if it will power through this level or experience a pullback. A more tradable determination might be made in the context of the broader technology sector....260 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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