SELECT SECTOR SPDR TECHNOLOGY SECTOR ETF - XLK

Monthly chart shows that the technology sector has been in consolidation since October 2002. There is a possible 5 waves pattern into the $28.59 high. IF we have 5 waves, THEN look for abc 3 wave retracement of the whole move. Possible lower high being made, with increasing selling pressure to the downside to come.

Weekly chart better shows the lower high made at the .618 fib resistance area. Look for continued weakness and a test of the $19.80 and lower. No buy signal/pattern evident as of yet on this time frame. While initially, it looked like the $19.80 low as going to hold, once the higher low was put in with such a bullish engulfing candle pattern in place, now that the selling has increased, it has negated the bullishness of the earlier signal. The pattern has decidedly become more bearish than bullish.

Daily chart shows increasing bearishness, as the bears gapped down the trading session open on both Thursday and Friday. There were however, initial bottom pickers, as early bulls tried to step in and take prices higher, but were unable to. No buy signal/pattern evident as of yet. Continuation lower is more likely based on pattern presented.