Is This A Historic Breakout In Technology?
The question coming into 2019 was whether this was an epic failed breakout in Tech last year, or just a successful retest of the March 2000 highs. If it's the latter, then we're talking about a historic upside resolution after 18 years of nothing. The weight of the evidence suggests to me that's exactly what is happening here.
So the way I see it, if this is the start of a new leg higher in Tech, stocks are in for an environment of rising prices. If we're above 66 in $XLK, it's hard for me to make a very bearish case for equities. Bears, come talk to me if this breakout fails. I don't think the probabilities are on your side. We want to be buyers.
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JC