September 14, 2026
Preview from my weekly report*
The
stock market’s rotational correction rolls on with signs of increasing pessimism.
The Art of Contrary Opinion tells us that a large majority of bears in a downside correction creates the fuel for the next up leg in a bull market.
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 63, 61, 57, and 52. Short-term performance heavily depends on changing geopolitical developments involving Iran.
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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