Is The Rebound Over Already?

The Technology Select Sector SPDR Fund ETF XLK tracks the tech sector of the market. It has run into resistance, which means the stage may be set for the rebound to end or pause.

In early March, $141 was a support level for XLK. A large number of investors bought it then and at that price.

They may have sold for a nice profit, but if they still hold it they have a losing position because the price is now lower.

Many of these investors now regret buying and decide to sell. They don’t want to take a loss, however, so they place their sell orders at the same level they bought their shares at.

In this case, it's $141. If there is a large enough amount of these sell orders, the level that was support can convert into resistance. That may happen here.

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