The computer and technology sector was 3.1% undervalued at the end of July and is 12.4% overvalued today. My benchmark for this sector is the Technology Select Sector SPDR Fund (XLK), and its daily chart profile shows overbought momentum.
With XLK we show that Tuesday was "key reversal" day where the day's close was below Monday's low after setting a new multiyear high. On Aug. 9 I provided "Buy and Trade" guidelines for "Trading Technology and Telecom Stocks." XLK ($30.58) is trading between my annual value level at $25.48 and my monthly and quarterly risky levels at $31.40 and $32.18, respectively. My annual pivot is at $29.93.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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