September 14, 2026
Preview from my weekly report*
Stock
market sentiment shows further movement toward pessimism as the short-term
rotational correction unfolds. Stay focused on the strongest stocks.
The Art of Contrary Opinion tells us that rising pessimism in a downside correction creates the fuel for the next up leg in a bull market. We continue to advise staying focused on the strongest stocks in the ongoing bullish primary long-term trend of the broad U.S. stock market.
Our Colby INNOVATION Portfolio has delivered a 34.29% total return this year, more than 2.4 times the performance of the NASDAQ Composite (13.90%) and the S&P 500® (13.14%). A short-term, profit-taking, corrective wave in June and July reversed in August on the back of outstanding earnings reports and extremely strong earnings guidance for the foreseeable future. Demand for innovative technology is expected to exceed supply for years ahead. The most dynamic INNOVATION stocks appear well positioned to continue their bullish major trends.
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Technology ETF (XLK) tested and held its 50-day SMA this month.
XLK remains far above its 200-day SMA, and the main trend is bullish as long as
the 50-day SMA stays above the 200-day SMA. Look for resistance near 192 and
198. Support sits around the recent lows above 178, 166, and 156-160.
Fundamentally, there is no evidence of a slowdown in the strong demand for
technology. Overinvestment concerns that have been persistent since the June
peaks appear to be easing following extremely strong earnings and forward guidance. Energy Sector SPDR (XLE) rose to an all-time high on
9/10/2026, confirming bullish momentum. Longer-term, the rising 50-day SMA
remains bullish as long as it holds above the rising 200-day SMA. Look for
resistance around 66 and support above 61, 57, and 52. Short-term performance
heavily depends on changing geopolitical developments involving Iran.
See The Colby Global Markets Report (click here) for our complete analysis of global markets and specific investment rankings.
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