Chart of the Day – Monday, June 10, 2024

Probably NOT tops… $IHAK $FDN $IGV pic.twitter.com/ko4Zu1Iwk8

— Steven Strazza (@sstrazza) June 10, 2024

Today’s Chart of the Day was shared by Steve Strazza (@sstrazza).

• While Semiconductors have gained weight within the Technology sector this year, other areas of Tech have lost momentum.

• Cybersecurity ($IHAK), Internet ($FDN), and Software stocks ($IGV) have rolled over since the end of last year. These bearish topping patterns have had plenty of time to work lower, but price has refused to break down.

• Steve points out that these topping patterns are failing. As we know, Failed Tops are often incredibly bullish.

The takeaway: Several popular Tech ETFs have rolled over since the end of last year. These topping patterns *should* be bearish, but they’re starting to resolve higher instead. It’s often bullish when bearish patterns fail.