Stock Market Mentor

Ignore Tech until this happens on $XLK – September 10, 2026

Scott McGregor
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Key Technical Takeaways

  • Month-Long Sideways Chop: XLK has been grinding sideways since August, failing to build sustained momentum in either direction.

  • Moving Average Clutter: Sharp three-day advances consistently fail and pull back into the cluster of key moving average ribbons.

  • Primary Breakout Trigger: XLK requires a move through and close above 189.00 to print a confirmed higher high.

  • Overhead Resistance Floor: Secondary near-term resistance sits above 191.00 (reflecting the middle-of-August high-water mark); failing to clear this level leaves price action vulnerable to printing a lower high.

The Geometry of Patience: Filtering Out the Sideways Chop in Tech ($XLK)

When a major market sector enters an extended consolidation phase, attempting to trade every minor intraday swing is a primary source of account drawdowns. When an ETF advances for three days only to retreat straight back into its moving average ribbons, the optimal strategy is patience.

As market technician Scott McGregor points out, the Technology Select Sector SPDR Fund (Ticker: XLK) has been trapped in a sideways range since August, making discipline the most valuable asset for active traders.

Deconstructing the Range Bound Tape

Over the past month, broad technology equities have lacked institutional trend direction. Traders attempting to buy short-term strength have been repeatedly chopped up as XLK fails at minor resistance levels and reverts to its central moving average ribbons.

To trade this sector successfully, participants must wait for price action to resolve the range rather than predicting the breakout.

Framing the Two-Stage Trigger Plan

To systematically engage with the tech sector when momentum returns:

  • Initial Breakout Alert (189.00): Set a primary price alert at 189.00. A move through and daily close above this level provides the first signal that buyers are attempting to print a structural higher high.

  • Overhead Resistance Clearance (191.00): Stalk the secondary resistance pivot at 191.00, which marks the mid-August high. Clearing 191.00 ensures that XLK avoids making another lower high and confirms genuine sector-wide expansion.

By keeping capital on the sidelines until XLK clears 189.00 and 191.00, traders protect workstation equity and position themselves for high-probability setups once technology becomes actionable again.