Conclusion, Investment Implications, Strategy

The SPDR S&P Software & Services ETF (XSW) is in a November 2023 major uptrend, according to its position above its 200-day moving average, amid expanding investor assets and relative outperformance versus the S&P 500 (SPY).  Together, these factors establish favorable conditions for more outright strength and relative outperformance from XSW and other software and services related assets.

XSW Trending Higher Amid Expanding Assets & Relative Outperformance Versus Stocks

The upper panel of Chart 1 below shows that the SPDR S&P Software & Services ETF (XSW) is in the midst of a November 2023 major uptrend according to its position above its 200-day moving average, a trend that was recently tested and held on Sep 11th.  The middle panel shows that the total net assets invested in XSW (AUM) are in the midst of a Sep 18th trend of monthly expansion.  Expanding assets indicate bullish conviction in higher prices.  The lower panel shows that XSW is also in the midst of a Sep 16th trend of Strategic (quarterly) relative outperformance versus the benchmark S&P 500 (SPY).

As long as these three conditions remain true, XSW is likely to continue moving higher in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Table 1

Click the table to make it larger