Equal-weight ETFs do not feature the large allocations to tech titans such as Apple and Facebook that are found in traditional tech funds, meaning investors can experience less downside when the largest tech names retreat.

“These levels have prevented the trend from reversing in the past, which is what many will be looking for again. From a risk management perspective, bullish traders will likely set their stop-loss orders directly below the trendline and moving average in an attempt to maximize the risk-to-reward ratio of the trade,” adds Investopedia.

Technology Select Sector SPDR

Tom Lydon’s clients own shares of Apple.