How StockCharts TV’s view on $XLK changed

2026-08-24
“The Sector Rotation Just Changed. Here’s What’s Leading”
XLK is neutral with a negative outlook; the decline is leveling off and the risk of a full downgrade is too high due to its market cap, so the position is neutral slightly underweight.

And then we come to stocks to stock sectors. And my oh my, for the first time since a long period, XLK is not the only sector on the right hand side. Has been joined by health care and financials, XLV and XLF.

And then there's technology and there are many reasons to put technology on an underperformance recommendation. I While I was preparing this video, I I thought about putting energy on a green and technology on a red.

And I can make a very good case for both situations. However, market capitalization is a factor and technology as you all know has the highest market capitalization. So the impact of technology on the market is huge.

If you get this wrong, you will your portfolio will be wrong. So I find it hard with technology still detached from the other sectors inside the weakening quadrant, but as you can see tail is already leveling off.

It's it you know the the speed of the decline is leveling off. And with this