Tech Sticks The Landing

It’s been an impressive run for the Technology sector. As noted in today’s Morning Lineup, since its closing low on 3/30, the sector has rallied 18.4% for its largest 12-trading day gain since coming out of the Covid Crash. It’s also traded higher for 12 straight days, which is already tied for the second-longest streak in the sector’s history. Following news from Iran that the Strait of Hormuz is fully open for as long as the ceasefire remains in place, the Technology sector is trading 1.5% higher in the pre-market, which would extend the streak to 13 straight trading days, trailing only the 15-day streak that ended in February 2017.

Besides an impressive 13-day winning streak, if today's early gains hold, the Technology sector will also take out its prior all-time high from late October. What really stands out about the chart, though, is how the sector “stuck the landing” with its 50-day moving average (DMA).

As shown in the chart, shortly after last October’s peak, the 50-DMA leveled out and then started a descent early this year, even as the 200-DMA kept rising. Heading into late March, the seatbelt lights were on as it looked as though the 50-DMA was coming in hot towards the 200-DMA. But the rally during the current winning streak softened the rate of descent, and over the last few days, the 50-DMA has started to flare just as it saw “wheels down” on the 200-DMA, sticking the perfect landing.

Now, when is the next “wheels up”?