The Technology Select Sector SPDR Fund (NYSEArca: XLK) includes companies from technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services.
“Still, we dare not call a top to the tech rally, per se; the intermediate-to-long-term data suggests merely a bout of stagnation on the horizon, which should ultimately resume to the upside,” according to Schaeffer’s. “QQQ averaged a gain of 3.56% three months after 50-day signals, and was higher more than 75% of the time. That’s compared to an average anytime gain of 2.28% since 1999, with a win rate of just over 66%. Echoing that, the ETF enjoyed stronger-than-usual six-month gains of 5.65%, on average, following signals, compared to 4.67% anytime.”
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of QQQ.