Conclusion, Investment Implications, Strategy
The SPDR S&P Telecom ETF (XTL) is in the midst of a May uptrend, according to its 200- and 50-day day moving averages, 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 IGV and other Technology/Software related assets.
XTL Making New HIghs Amid Expanding Assets & Relative Outperformance Versus SPY
The upper panel of Chart 1 below shows that the SPDR S&P Telecom ETF (XTL) is in the midst of a May 2023 major and minor uptrend, as defined by its 200- and 50-day moving averages. XTL has most recently broken major overhead resistance at 104.91, clearing the way for further gains. The middle panel shows that the total net assets invested in XTL (AUM) are in the midst of a July trend of monthly expansion. Expanding assets indicate bullish conviction in higher prices. The lower panel shows that XTL is also in the midst of a June trend of quarterly relative outperformance versus the S&P 500.
As long as these three conditions remain true, XTL is likely to continue moving higher in the weeks ahead.
Chart 1
Current Sector & Industry Group Ideas
Table 1
Click the table to make it larger
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.