Technology/ XLK

We've covered Tech before, it's not a pretty sight, there have been some significant trend changes recently and in to 2015, I'm giving you a look at some of the background, longer term charts just to get your bearings, what I'm really trying to point out is the strange behavior today and it showing up in Tech which I do like as a longer term position short, whether short XLX , using the leveraged TECS (3x short Tech) or just broad exposure via a QQQ short or leveraged ETF derivative like SQQQ (3x short QQQ).

 XLK/Tech Daily chart, note the clean uptrend and then the increased ROC to the upside peeling away from the trendline, this is the "seemingly" bullish activity that is almost always a red flag warning of an impending change in trend (orange arrow), suddenly there's a big change in trend with the first major lower low in well over a year followed by a more lateral trend that if you look closely is a series of lower highs and lower lows.

 Here's a closer look and as far as the most recent swing to the upside, note the candlesticks and volume.

 The long term 2 hour chart goes from confirmation to a sharp negative divegrence leading to the break of the trend and since the lateral Q4-2014/Q1 2015 downtrend, note the leading negative divergence and this is a serious time frame at 2 hour.

 The 60 min chart may look slightly different, but the signals are exactly the same, the negative in to the big dip at the October lows and a leading negative divergence since in to a lateral trend with lower highs/lower lows, a downtrend.

While a major break has not occurred since the October lows, if you look at XLK from the October lows/base/cycle, it's clearly rounding over in the trend of lower highs/lower lows.

That's kind of the background information, the very negative tone in Tech.

At a 15 min chart it's not only leading negative, but you can make out each of the negative divergences at the series of lower highs.

 The same is true of the 10 min chart, just to show we have what I'd call a full house through multiple timeframes.

However for the current activity rigt now and today's strange trends, check out this 2 min chart showing the most recent base area since the 14th-16th's failure and note today's activity specifically on this 2 min chart, seeing sudden and seemingly pretty strong distribution.

XLK 2 min.

The average that would be most effected my this would be the Tech heavy NASDAQ 100/QQQ.

Here's the same 2 min chart in QQQ today...

I don't think that's coincidence...