IXIC had highly anticipated and hoped for bounce after recent correction, which lines up with the 10 year Treasury bond rate dropping a bit. It looks like both charts are hitting resistance/support. IXIC looks like its neither terribly overbought or oversold on RSI. Tomorrow is a potential big pivot point for both charts. Will TNX find support and IXIC meet resistance? Or will TNX break down and IXIC break up?
Either way, I am still of the opinion that we are not at the bottom of the tech correction yet, just a bounce day. Valuations are still too high in the tech sector and value stocks too appealing given TNX rates increasing. If TNX stays flat, I think we will see more tech growth, but a jump in TNX will probably correlate closely to a drop in IXIC as it has been.
IXIC support looks to be at 12600, then 12230 below that. Be ready to hedge up if you haven't already. I prefer selling covered calls and using the premiums to buy puts when the RSI creeps above 70 on the individual company's chart while watching for divergence between volume and candles to indicate pivot points.
Either way, I am still of the opinion that we are not at the bottom of the tech correction yet, just a bounce day. Valuations are still too high in the tech sector and value stocks too appealing given TNX rates increasing. If TNX stays flat, I think we will see more tech growth, but a jump in TNX will probably correlate closely to a drop in IXIC as it has been.
IXIC support looks to be at 12600, then 12230 below that. Be ready to hedge up if you haven't already. I prefer selling covered calls and using the premiums to buy puts when the RSI creeps above 70 on the individual company's chart while watching for divergence between volume and candles to indicate pivot points.