For the first time in over a year, we are forced to question whether the Communication Services sector is still in a downtrend. The group has been the unquestioned laggard on the downside since September 2021, but an impressive rally to start January has them breaking through the relative downtrend line from those 2021 highs.
(Premium) January Communication Services Outlook
The relative downtrend in Communication Services remains intact. Momentum is still in a bearish range, and prices have yet to set a higher high or challenge the downtrend line from the 2021 peak.
(Premium) December Communication Services Outlook
The relative downtrend in Communication Services remains intact. We’ve seen a nice bounce over the last few weeks, but momentum is still in a bearish range, and prices have yet to set a higher high or challenge the downtrend line from the 2021 peak.
(Premium) November Communication Services Outlook
The downtrend in Communication Services remains intact. Aside from expecting a near-term relative bounce as we work through the last week of collapse, there’s no reason to be anything but underweight. It could be that we just saw capitulation in the space, but we’ve already seen two selloffs of similar magnitude this year, and neither resulted in a trend reversal.