{"id":194405,"date":"2023-08-03T02:38:50","date_gmt":"2023-08-03T06:38:50","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=194405"},"modified":"2024-01-24T12:12:58","modified_gmt":"2024-01-24T17:12:58","slug":"chart-advisor","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor\/","title":{"rendered":"Chart Advisor: Is It Whipsaw Season for Tech?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">By&nbsp;<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=a15c4f7a6c174925b4123319389c13df&amp;_e=K6bYSFKZ0Y0m9Tx0DPpX-5ZnE152tJWDfE5r2LgGC49aPK-2Qzqmew_roUpAU4OMceURo3noDq3SIvhxXfhu5pJWbhQtdJffAxaVEic5eIaZ5F1n2LLU4xelEbIFCjJtdOUSp_nPicgL_gRMvOeM7PBnwWuRhK-olHU7Om0QBrzeFO3K-X8jJb-apWitBkA0krYyxXlQdjUxsc_zX0Wp4xJnPQt-vB94uoMnTEFlwQCO7zJitcCbrltvw9jtcE14vEOwaM-mwQPZH3anqTiPkl638blKFYRy6WXKeaL_0Wx2O0Qc0paSkDo8Xg55O7iPFUmg-sS-DiHwkqcPxsge3rU8IUXu6rKlO9VkRdwWdU85NvrTRFStusHCcFe7WK3GKtma5gFkKtexVQ_KlNDjfH2DjKWJEpJ5msBGWTs9Sg7dIRYRZfL4CbrkACoQZSAmqIzoljLlJt_uc9M_OeVfQA%3D%3D\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=a15c4f7a6c174925b4123319389c13df&amp;_e=K6bYSFKZ0Y0m9Tx0DPpX-zNCJGAqA4L6psA5z6vA_gSdgIbdZ6XxPy_ayV86wL_h6jkgFVGEPKmpNzlTTTKg4PQg5zmbpQeOuxZcjSJtfKGB1l69MNWjVq9hLDD2VsFBY8FfvIC8TFBF9JMHDleMKrX56aIyXb5z6LXOu7JfbYXzlQHRRqPUV1qbCMe5EjbRT9dVpH6xYTn58htiICbLraiK2wTfs1CLXgRS6HBAnomKxn2Qlrufo4eG-Yjz1O3KnvdjmVQSMjXrYYRGAYxiawKjUMDpP7VUdjpqdzKP_Xf5XjEOZIHIkF2vk80HkoNz_vry1cExd4rxQtTlpI4d0_mPGHo7q5q5GrSo9v-gSeL4ZqaXLT4mHvpgz97Z_rYKHL2Rg05xieao43IbgTMWZQ5bSG_wqeeFCKMPP1zi8x9abRrtiFTpuM5pPTPg7ipf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1\/ Is It Whipsaw Season for Tech?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2\/ Tech Halts Its Advance<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3\/ Rates Make Their Move<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4\/ Crude Stops for Gas<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><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-is-it-whipsaw-season-for-tech\">1\/ <strong>Is It Whipsaw Season for Tech?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Selling has gripped the markets as major indexes and sectors run into overhead supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is particularly true for technology-related groups. We\u2019re paying close attention to the short-term&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/continuationpattern.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">continuation patterns<\/a>&nbsp;in these indexes as the sell-off picks up momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Prime Cyber Security ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=hack&amp;hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">HACK<\/a>) is an excellent example, failing to break out of a massive&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/reversal.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">reversal pattern<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/1-3-1100x541.png\" alt=\"\" class=\"wp-image-194406 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/541;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If more tech areas resolve lower similar to HACK\u2014and many are well on their way\u2014let\u2019s imagine the nature of the coming&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/correction.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">correction<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not pretty.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The major indexes will likely experience severe retracements if too many of these reversal patterns come undone. That\u2019s why monitoring the near-term action in tech is so important\u2014mainly the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/flag.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">flag<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/p\/pennant.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">pennant<\/a>&nbsp;forming at or near key levels.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stock market bulls do not want to witness&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/w\/whipsaw.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">whipsaw<\/a>&nbsp;season in tech.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-tech-halts-its-advance\">2\/ <strong>Tech Halts Its Advance<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not only are tech and&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/g\/growthstock.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">growth stocks<\/a>&nbsp;running into overhead supply on absolute terms, but the relative trends also imply that their current outperformance may take a breather.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below is the Nasdaq 100 dating back to the early 2000s relative to the Dow Jones Industrial Average, the S&amp;P 500, and the Russell 2000:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/2-2-1100x546.png\" alt=\"\" class=\"wp-image-194407 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Notice how these ratios press against a shelf of former highs at the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/d\/dotcom-bubble.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">dotcom bubble<\/a>&nbsp;peak and 2020 highs. These former highs signify a logical level for corrective action in the coming weeks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if we finally get a decisive breakout above these&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">resistance levels<\/a>, tech stocks will likely kick off the next leg higher on absolute terms, too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-rates-make-their-move\">3\/ <strong>Rates Make Their Move<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rates are on the move again, and they\u2019re not rolling over.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. 30-year&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/t\/treasury-yield.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">Treasury yield<\/a>&nbsp;(<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=tyx&amp;hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">TYX<\/a>) has cleared numerous hurdles lately. It broke above a shelf of former highs. It rose to its highest level year to date. And it reclaimed its former 2014 high.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"541\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-1100x541.png\" alt=\"\" class=\"wp-image-194408 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-1100x541.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-700x344.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-300x148.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-768x378.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2-1536x756.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/3-2.png 1878w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/541;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The question is no longer whether rates will&nbsp;<em>fall<\/em>&nbsp;later this year. It\u2019s now more a matter of how fast they will&nbsp;<em>rise<\/em>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stocks and&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/risk-asset.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">commodities<\/a>&nbsp;would prefer a slow sideways crawl in yields. But if the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/risk-asset.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">risk assets<\/a>&nbsp;don\u2019t get what they want, another swift rise in rates could make for a bumpy ride into the holidays.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-crude-stops-for-gas\">4\/ <strong>Crude Stops for Gas<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.investopedia.com\/articles\/active-trading\/040615\/introduction-trading-oil-futures.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">Crude oil futures<\/a>&nbsp;have been on a tear, gaining over 20% since late June.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not only crude. The entire energy space has shown impressive&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/relativestrength.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">relative strength<\/a>&nbsp;this summer. But the explosive advance for \u201cblack gold\u201d is running into a logical resistance level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check out the shelf of former highs, making a significant area of overhead supply:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/4-2-1100x561.png\" alt=\"\" class=\"wp-image-194409 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Crude oil retested those former highs today and quickly retreated lower, falling 2.00%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It makes sense for crude to pause based on overwhelming supply, especially given the strong preceding performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s up to energy bulls to support price, as a corrective period seems likely. And it appears they have the upper hand\u2014if the overbought reading on the 14-day&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/rsi.asp?hid=52e0514b725a58fa5560211dfc847e5115778175&amp;did=9862292-20230803&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=080323\" target=\"_blank\" rel=\"noreferrer noopener\">relative strength index (RSI)<\/a>&nbsp;is any indication.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8212;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Originally posted 2d August 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Selling has gripped the markets as major indexes and sectors run into overhead supply.<\/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":"","jetpack_post_was_ever_published":false},"categories":[21,14,15,17,18,6,8,9,22,23,26,3],"tags":[10138,445,6904],"contributors-categories":[13686],"class_list":["post-194405","post","type-post","status-publish","format-standard","category-commodities","category-etfs","category-fixed-income","category-futures","category-macro","category-north-america","category-region","category-securities","category-stocks","category-technical-analysis","category-text-articles","category-traders-insight","tag-hack","tag-rsi","tag-tyx","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 v27.8) - 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