I last wrote about MicroSectors™ FANG+™ Index ETN with 3X leverage (NYSE:) (an exchange-traded note that tracks 3x daily price movement on an index of US-listed technology and consumer discretionary companies) in my .
As you can see from the following monthly chart, it failed to recover and hold above the 33.00 level, which is mentioned there, and closed at 25.74 Friday.
It is approaching a price support zone from 20.00 at 25.00. We could see it trying to stabilize somewhere in this area in the next few days.
If not, drop and hold below 20.00 could be catastrophic for the Technology sector.
the ten shares which consist of FNGU are shown on the following daily 1-year charts. These are, in the order of the tables below: Metaplatforms (NASDAQ:), Amazon (NASDAQ:), Apple (NASDAQ:), netflix (NASDAQ:), Alphabet (NASDAQ:), Ali Baba (NYSE:), Baidu (NASDAQ:), Nvidia (NASDAQ:), You’re here (NASDAQ:), Twitter (NYSE:).
Most of them are at or near price support, with the exception of TWTR, which is well below for the year.
The following daily ratio table of the : report shows that a bearish moving average death cross formed several days ago, and the price fell below the major support of 500.
I noted in my that a death cross was also formed on : report and that the “sell the tear” traders had overtaken “buy the sleazy”. The same is true for this report.
If the NDX:VXN fall and hold below 400, its next major support level is at 300, followed by 250 and 200, respectively.
In conclusion, if FNGU fall and hold below 25.00, and if the NDX:VIX Report fall and hold below 400, and if the ten FNGU shares fall and hold below their short-term price support levels, I would not be surprised to see FNGU retest the lower edge of its support zone at 20.00.
One drop and hold below 20.00 to FNGU and lower 300 on the NDX:VXN Report could be catastrophic for the Technology sector.
Keep an eye on price action and support levels on the SPX and SPX:VIX Report described in the aforementioned message for any corroborating clues in this regard.