XLK has a neutral-to-negative outlook as it stabilizes below 100 RS; breaking 193-194 is required to catalyze a wider market rally.

Unlike for a long period where we only had XLK technology on the right hand side of the graph, the last couple of weeks, five, six weeks, we now see that the spread and the distribution of the sectors on the RG is going back to a little bit more normal situation, normal positioning.

And then we have technology stabilizing the downward momentum is still there because it's below 100 but it's not accelerating anymore. So it's still at negative momentum but stabilizing.

And that gives because it was it's still the sector with the highest RS ratio reading. It gives the sector, it gives the technology sector the possibility and the room, the wiggle room to rotate back up until until we really get an acceleration further to the lagging quadrant at a negative heading.

I'm going to keep the technology sector at a mildly negative. So, it's a neutral with a negative outlook, kind of sideways outlook for the time being. From a relative perspective, it doesn't tell you anything about the price direction of this sector.

And the last chart I want to share is because everybody wants to look at technology and it is the largest sector in the universe. So here is the technology sector. Not much changed since a couple of weeks ago.

So we just like these are all inside bars here. We're still holding up after the breakout of this flag. I think that the expected effect, which you could could see after like a flag-like correction, we usually would see like an aggressive acceleration.

I think that option is now off the table. That's not happening anymore. We will see resistance coming in around 193 for XLK. But what's more important, it looks like relative strength has hold.

We put a new low in place and if momentum continues to improve, it will have enough time to to pull the RS ratio line back up again and rotate back into the leading quadrant. And if that works, if that's going to happen, that'll be the catalyst for SPY to finally move higher or continue to move higher.

This sector, the technology sector, will be crucial for the further development of SPY. If technology remains in the doldrums, I don't think there'll be a very strong rally for SPY.

If Axel K is able to turn this thing around, turn around strength around and break above 193 194, that'll be the catalyst for a renewed rally in uh SPY and in the stock market.