The Technology Select Sector SPDR Fund ETF (NYSE:XLK) tracks the tech sector of the market. It has run into resistance, which means the stage may be set for the rebound to end or pause.
In early March, $141 was a support level for XLK. A large number of investors bought it then and at that price.
They may have sold for a nice profit, but if they still hold it they have a losing position because the price is now lower.
Many of these investors now regret buying and decide to sell. They don’t want to take a loss, however, so they place their sell orders at the same level they bought their shares at.
In this case, it's $141. If there is a large enough amount of these sell orders, the level that was support can convert into resistance. That may happen here.
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