Tech Stocks Below Trendline, Energy, Materials and Miners Above Trendline

Price chart analysis and commentary.

While the Nasdaq 100 and the big cap tech stocks drop below their up trend line, the energy and metals names manage to stay above theirs. The recent spate of selling in the 2 sectors reveals weakness in the former and strength in the latter.

Here’s the daily price chart for the Nasdaq 100:

That’s 3 closes below the 50-day moving average.

The daily price chart for the tech stock ETF is here:

It’s the same basic look as the Nasdaq 100 but note that this one now has 4 closes under the 50-day moving average.

Now take a look at the daily price chart for the energy sector ETF:

This oil and and fund has pulled back, for sure, but remains well above the 50-day moving average — the uptrend remains intact. Today’s doji-like price candlestick suggests that the selling is easing. The lower volume tends to confirm this.

The gold miners ETF’s daily price chart looks like this:

The fund remains well above the up trending 50-day moving average and today’s close is positive.

Here’s the daily price chart for the junior gold miners ETF:

After 3 days of selling, this one has a positive close and is trading above its up trending 50-day moving average as well.

All of the above is more evidence that buyers are moving, slowly but steadily, from a formerly very popular sector — tech — to the recently mostly ignored sectors of energy, materials and mining.

There are no guarantees that this will continue but that’s the pattern right now.

Not investment advice. For educational purposes only.