{"id":189484,"date":"2023-04-27T14:21:19","date_gmt":"2023-04-27T18:21:19","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=189484"},"modified":"2024-01-24T12:13:53","modified_gmt":"2024-01-24T17:13:53","slug":"chart-advisor-big-tech-is-back","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-big-tech-is-back\/","title":{"rendered":"Chart Advisor: Big Tech Is Back"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-wednesday-26th-april-2023\">Wednesday, 26th April, 2023 <\/h2>\n\n\n\n<p><strong>1\/ Microsoft Makes the Grade<\/strong><\/p>\n\n\n\n<p><strong>2\/ ARKK Gets Tight<\/strong><\/p>\n\n\n\n<p><strong>3\/ Russell Wrestles with Support<\/strong><\/p>\n\n\n\n<p><strong>4\/ Emerging Markets Make New Lows<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-microsoft-makes-the-grade\">1\/ <strong>Microsoft Makes the Grade<\/strong><\/h2>\n\n\n\n<p>Microsoft (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=MSFT&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">MSFT<\/a>) gapped higher today by more than 7% as investors cheered the company&#8217;s&nbsp;<a href=\"https:\/\/www.investopedia.com\/microsoft-alphabet-earningsg-expectations-alphabet-struggles-with-ad-revenues-7485112?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">first-quarter earnings report<\/a>, released after yesterday&#8217;s close.<\/p>\n\n\n\n<p>The world\u2019s second-largest stock just got a lot bigger, adding roughly $200 billion in&nbsp;<a href=\"https:\/\/www.investopedia.com\/investing\/market-capitalization-defined\/?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">market capitalization<\/a>&nbsp;on today\u2019s move. To put the magnitude of today\u2019s gain into perspective,&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bluechip.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">blue chip<\/a>&nbsp;stocks such as McDonald&#8217;s (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=MCD&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">MCD<\/a>)&nbsp;and Nike (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=NKE&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">NKE<\/a>) have market caps of about $200 billion.<\/p>\n\n\n\n<p>Here is a daily bar chart showing the stock breaking out to fresh 52-week highs:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/1-19-1100x518.png\" alt=\"\" class=\"wp-image-189494 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/518;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>But this wasn\u2019t just any breakout to new highs. How and where the breakout occurred is what really stands out.<\/p>\n\n\n\n<p>The stock just registered a&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/breakawaygap.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">breakaway gap<\/a>, which is as bullish as a formation can get. And it took place at a major confluence of&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">resistance<\/a>&nbsp;at last summer\u2019s highs and the 61.8%&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/fibonacciretracement.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">Fibonacci retracement<\/a>.<\/p>\n\n\n\n<p>Microsoft has all the classic characteristics of a bearish-to-bullish&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/reversal.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">trend reversal<\/a>, including a 200-day&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/movingaverage.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">moving average (MA)<\/a>&nbsp;that is now sloping higher. As long as price holds above its August highs, the path of least resistance could now be higher for this tech behemoth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-arkk-gets-tight\">2\/ <strong>ARKK Gets Tight<\/strong><\/h2>\n\n\n\n<p>When it comes to U.S. equities, the ARK Innovation ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=ARKK&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">ARKK<\/a>) provides an excellent gauge of how the most speculative&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/g\/growthstock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">growth stocks<\/a>&nbsp;are performing.<\/p>\n\n\n\n<p>The chart below shows ARKK&#8217;s volatility (as measured by the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bollingerbands.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">Bollinger Bandwidth<\/a>&nbsp;indicator in the lower pane) at its lowest level since September 2021, as prices have been&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/coiledmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">coiling<\/a>&nbsp;in a tight range for the past two months:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/2-19-1100x546.png\" alt=\"\" class=\"wp-image-189495 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>These periods of volatility contraction are often followed by big moves in either direction that tend to set the tone for the coming weeks and months.<\/p>\n\n\n\n<p>As such, a strong move in ARKK could be on the horizon. We&#8217;ll be watching closely over the next few days for clues about the future direction of these speculative growth stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-russell-wrestles-with-support\">3\/ <strong>Russell Wrestles with Support<\/strong><\/h2>\n\n\n\n<p>The iShares&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/russell2000.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">Russell 2000<\/a>&nbsp;ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=IWM&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">IWM<\/a>) is testing the all-important&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/z\/zone-of-support.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">support level<\/a>&nbsp;around $170 yet again. This level represents the prior-cycle highs from 2018 and 2020.&nbsp;<\/p>\n\n\n\n<p>This former resistance-tuned-support has now been successfully tested five times over the past year. The question now is whether or not it can hold.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/3-20-1100x518.png\" alt=\"\" class=\"wp-image-189496 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/518;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The more times a level is tested, the more likely it is to break, as each successive test soaks up demand. Following this key principle of&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/t\/technical-analysis-of-stocks-and-trends.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">technical analysis<\/a>, the Russell 2000 could be on the verge of breaking.<\/p>\n\n\n\n<p>This is one of the most important charts and levels to watch right now as small caps generally tend to set the trend for the broader market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-emerging-markets-make-new-lows\">4\/ <strong>Emerging Markets Make New Lows<\/strong><\/h2>\n\n\n\n<p>It&#8217;s no secret that international developed market indexes such as the MSCI&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/e\/eafe_index.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">EAFE Index<\/a>&nbsp;have been in a leadership role since last year, currently trading near their highest levels since 2021 relative to the S&amp;P 500 (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=SPY&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">SPY<\/a>).<\/p>\n\n\n\n<p>However, not all international markets are created equal. It&#8217;s a very different picture when we look at&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/e\/emergingmarketeconomy.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">emerging market<\/a>&nbsp;stocks (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=EEM&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">EEM<\/a>) relative to the S&amp;P 500:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/4-19-1100x518.png\" alt=\"\" class=\"wp-image-189497 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/518;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>EEM just hit fresh five-month lows relative to SPY. This ratio has been in a structural&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/d\/downtrend.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">downtrend<\/a>&nbsp;for over 12 years now, and unlike developed markets, there is no evidence of this trend reversing anytime soon.<\/p>\n\n\n\n<p>For now, the playbook could remain overweight&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/a\/advanced-economies.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8979266-20230426&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042623\" target=\"_blank\" rel=\"noreferrer noopener\">developed markets<\/a>\u2014particularly European ones\u2014and underweight emerging markets.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 26th April 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Microsoft (MSFT) gapped higher today by more than 7% as investors cheered the company&#8217;s first-quarter earnings report, released after yesterday&#8217;s close.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14,18,6,8,9,22,23,26,3],"tags":[7936,2547,2148,208,533,158,652,262],"contributors-categories":[13686],"class_list":{"0":"post-189484","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-etfs","7":"category-macro","8":"category-north-america","9":"category-region","10":"category-securities","11":"category-stocks","12":"category-technical-analysis","13":"category-text-articles","14":"category-traders-insight","15":"tag-arkk","16":"tag-eafe","17":"tag-eem","18":"tag-iwm","19":"tag-mcd","20":"tag-msft","21":"tag-nke","22":"tag-spy","23":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Big Tech Is Back | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"Microsoft (MSFT) gapped higher today by more than 7% as investors cheered the company&#039;s first-quarter earnings report, released after yesterday&#039;s close.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/189484\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: Big Tech Is Back | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Microsoft (MSFT) gapped higher today by more than 7% as investors cheered the company&#039;s first-quarter earnings report, released 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