U.S. stocks bounced higher after two consecutive days of declines. Investors had recently put the brakes on what had been a furious rally in stocks in recent weeks, leaving the major indexes hovering near records. Some of the caution eased on Wednesday, as stocks jumped and recouped some of their losses.
The Technology Sector Bullish Narrative
The technology ETF XLK broke out to the new all time highs last week and now has successfully retested the break out level forming a bullish ‘former resistance turned into support’ pattern. As long as the ETF price can hold above the $139.5 pivot, bullish momentum should continue.
Nasdaq futures appear to be confirming bullish narrative for the technology sector by forming another potential Bullish Wedge pattern. The pattern will be confirmed if NQ can move above the 13930 pivot, which should open the door for the 14000 level retest.