Conclusion, Investment Implications, Strategy
The SPDR NYSE Technology ETF (XNTK) is currently in the midst of major and minor uptrends, quarterly relative outperformance versus the benchmark S&P 500, and monthly asset expansion. Together, these conditions indicate a favorable environment for XNTK’s recent strength and relative outperformance to continue.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Sector & Industry Group Ideas rectangle at the top of the Research Center.
Table 1
Click the table to make it larger
This table also regularly appears in our weekly Keys To This Week: Sector & Industry Groups report published on Monday mornings.
Analysis and Rationale
The upper panel of Chart 1 below plots the SPDR NYSE Technology ETF (XNTK) daily since Q4 2023 with its 200- and 50-day moving averages, widely-watched major and minor trend proxies. A corresponding chart of the daily relative performance of XNTK versus the S&P 500 (SPY) appears in the lower panel with its 63-day moving average, which we use to define the quarterly trend of relative performance.
Chart 1
The upper panel shows that XNTK is in the midst of major and minor uptrends, the latter which began on Nov 3rd and currently remains valid above 158,31. The lower panel shows that XNTK is also in a Nov 1st trend of quarterly (our Strategic time frame) relative outperformance versus SPY and that this trend was most recently tested and held on Jan 4th. Not shown is that the total net assets invested in XNTK are currently in a Jan 8th trend of monthly (our Tactical time period) expansion. Expanding assets indicate investor conviction in higher prices.
The current combination of major and minor uptrends, quarterly relative outperformance versus the benchmark S&P 500, and monthly asset expansion indicate favorable conditions for recent strength and relative outperformance by XNTK to continue.