XLC bearish Trend$\text{XLC}$'s performance is driven by a few dominant companies (nearly40% is held by Meta Platforms and Alphabet. Technical weakness here often reflects investor nervousness regarding digital advertising spend or regulatory pressures on these giants.
The Communication Services Select Sector SPDR Fund XLC has broken its long term directly dominant uptrend shown by brown line break. This failure indicates the immediate, aggressive bullish momentum is gone.
XLC is highly compressed and cannot remain at this critical intersection for long. The resolution will likely lead to a significant move, either re-establishing the bullish trend or confirming a deeper correction
Trade ideas
Trump Tariffs are Wrecking the MarketTrump’s disastrous right-wing policies continue to wreak havoc, with the latest victim being AMEX:XLC $XLC. His reckless tariff strategy is proving to be one of the greatest self-inflicted economic blunders in American history, harming industries, investors, and consumers alike. These tariffs have weakened the economy, disrupted markets, and imposed unnecessary burdens on businesses. The long-term consequences of these policies will be felt for years to come as the American economy struggles to recover from this avoidable crisis.
Head and shoulders top has been completed today, 4/3/25. The price objectives are 88.6 and 84.60
OptionsMastery: H&S on XLC!🔉Sound on!🔉
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XLC Time Frame Continuity Strength Communications are showing strength. This week they had unusual volume with new highs and seem to have found support. RSI is near the oversold area and XLC is sitting above the current most VWAP. There are support and resistance zones in the horizontal lines in grey. My stop loss will be around 92.89. My exit plan is once the gap is closed on 99.18. The shorts are running out of steam and volume has picked up over the last week. Looking for LEAPs.
Analyzing Sector Dynamics and Momentum ShiftsIntroduction:
The performance ratio between the communications sector (XLC) and the technology sector (XLK) highlights two of the market's leading sectors, both of which feature overlapping companies. While XLC has been a strong performer for much of the year, it has recently shown signs of weakness, even lagging behind traditionally defensive sectors like utilities. Historically, technology has maintained more consistent strength compared to communications.
Analysis:
Sector Comparison: The XLC-to-XLK ratio helps gauge the relative momentum between these two sectors. Recent weakness in XLC, paired with XLK’s historical stability, suggests a shift in relative strength back toward technology.
Rectangle Pattern: Currently, the XLC-to-XLK ratio displays a rectangle formation, which hints at a potential continuation of the downtrend should the ratio break below the rectangle’s lower trendline. This pattern could indicate that XLC’s outperformance may have peaked for now.
Momentum Shift: Although XLC has shown some recent underperformance, any shift in momentum away from communications is likely to be gradual rather than abrupt, given the current technical setup.
Conclusion:
The relative performance of XLC and XLK is crucial for understanding current sector dynamics and where momentum may be shifting. While technology remains robust, the recent pattern in the XLC-to-XLK ratio suggests a possible weakening in communications. Traders should watch for a break below the rectangle pattern to confirm a continuation of the downtrend. What’s your view on the XLC-to-XLK relationship? Share your thoughts below!
Charts: (Include relevant charts showing the XLC-to-XLK ratio, the rectangle formation, and the potential breakout areas)
Tags: #Communications #Technology #SectorAnalysis #XLC #XLK #TechnicalPatterns
XLC Weekly ChartFun Fact in 2018 tech became to large of a percentage of the S&P500 and the committee decide to change the Telecomm sector name to communication services. Alphabet and Facebook now Meta moved from technology along with some key names from the consumer discretionary sector like Disney, Comcast, and Netflix. Fast forward to today we are slowly approaching all time highs. Question is what happens after we get there?
$XLC: Back Over 80 Soon?Looking at the comms sector to potentially make a move back above 80 here, we have seen recent underperformance but our assumption here is that we may look back above this level in the near future. Despite GOOGL underperformance, NFLX seems to have no end to it's rally in sight.
Gaps up into long term ResistanceGaps are for buying and selling right? Well, this gap is right into a 52 week resistance level, with all 6 timeframes decently overbought. Looking short here with first target at 75. This thing moves slowly so i'll revaluate whenever we get there. A move to 77 would not be ideal, allowing for a potential break and bounce of this POC level, giving some potential to longer-term continuation.
The Communications Sector Is Breaking OutCommunications could be on the verge of a strong breakout as price has broken, and stayed above, the $69.50 area.
Many of the top stocks in the sector are running on the back of strong earnings, like Meta, Netflix, and Disney:
META:
NFLX:
DIS:
Buying shares now and risking to $67 could be a great long-term move, while trailing the position on short term swing pivots.
Alternatively, buying $67 strike call options at $400 a pop and aiming to take off half at a 1:1 to pay for the trade could be a solid move. Be careful with these and work your orders, the options aren't the most liquid things in the world.
Either way, we like the setup here and have bought some shares to track how it progresses.
Cheers!
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XLC Strong Sector / Ready for Flat Base Breakout?The Communications Sector has been doing well in this choppy market. This Weekly Chart shows AMEX:XLC forming a flat base. And compared to other sectors it is showing good Relative Strength.
I have set an alert on the resistance line. If the market starts firming up and this triggers, I will use a lower timeframe to determine a good entry and stop loss.
Ideas, not investing / trading advice. Comments welcome. Thanks for looking.
Will communications $XLC lead the next leg up? In the last 6 months AMEX:XLC is the leading sector in the $SPX.
And with the recent sell of in the energy sector AMEX:XLE , communications is the only sector without lower lows.
There are various stocks that confirm this strength in AMEX:XLC , some are NASDAQ:MATH , NASDAQ:ATVI , NASDAQ:META , NASDAQ:CHTR and many others.
Let's wait and see.
XLC - COMMUNICATIONS XLC has and is still one of the strongest sectors.
this is still one of the most skewed ETF's with META's absurd weighting but nonetheless this pattern is still consolidating on the weekly chart.
There is a lower weekly high we have to monitor right at the top of the resistance channel but with if earnings guidance and revisions are met expect the likes of Google and Meta to lift this to the upside target of $74.
Watching weekly close below $64.50 for a bearish setup.
The technical weekly uptrend remains strong but a daily trend has weakened and needs to be monitored for potential accumulation or additional distribution.






















