Technology stocks have been coming to life recently, and some traders may expect new highs soon.
The first pattern on today’s chart of the SPDR Select Sector Technology Fund is last July’s peak around $238. As the fund retreated from that level, it began a period of underperformance. (See ratio chart in the lower study.) The weakness continued through April, when it started to outpace the broader market again.
Second is $240.84, the final price on December 6 and the highest weekly closing price ever. XLK is on track to potentially surpass that level, which could confirm a breakout.
Third, the 50-day simple moving average (SMA) is nearing a potential “golden cross” above the 200-day SMA. Is the longer-term trend turning bullish again?
Finally, price action in this fund could be important for the broader market because technology represents almost one-third of the S&P 500 index.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Technology ETF (XLK)
1-year: +9.87 %
5-years: +135.69%
10-year: +432.42%
(As of May 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart of the SPDR Select Sector Technology Fund is last July’s peak around $238. As the fund retreated from that level, it began a period of underperformance. (See ratio chart in the lower study.) The weakness continued through April, when it started to outpace the broader market again.
Second is $240.84, the final price on December 6 and the highest weekly closing price ever. XLK is on track to potentially surpass that level, which could confirm a breakout.
Third, the 50-day simple moving average (SMA) is nearing a potential “golden cross” above the 200-day SMA. Is the longer-term trend turning bullish again?
Finally, price action in this fund could be important for the broader market because technology represents almost one-third of the S&P 500 index.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Technology ETF (XLK)
1-year: +9.87 %
5-years: +135.69%
10-year: +432.42%
(As of May 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
Check out TradingView's The Leap competition sponsored by TradeStation.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.