It wasn\u2019t a guaranteed breakdown. In fact, I pointed out the action that could negate the bearish pattern\u2026 <\/p>\n\n\n\n
\u201cIf XLK can rally above $270 and make a new high \u2013 before it makes a lower low \u2013 then this pattern is negated, and the uptrend remains intact.\u201d<\/em> <\/p>\n\n\n\n That\u2019s what happened this week. We got a stick save. <\/p>\n\n\n\n Here\u2019s the updated chart\u2026 <\/p>\n\n\n\n XLK did indeed head lower in the days after we noted the possibility of the bearish H&S pattern. The stock tested the double support of its 50-day moving average, and the \u201cneckline\u201d of the Head & Shoulders pattern. All the bears had to do was apply enough selling pressure to break those support levels, and the pattern would have likely played out with a swift move lower. <\/p>\n\n\n\n Instead, we got a stick save. <\/p>\n\n\n\n The bulls stepped up. XLK bounced off of support. And, that bounce has been strong enough to push XLK up to a higher high. <\/p>\n\n\n\n The H&S pattern has been negated. The bulls are back in charge. And, as long as XLK can hold above $259, the momentum remains bullish. <\/p>\n\n\n\n From here traders should pay close attention to how the next pullback plays out. If XLK forms a higher low and starts to rally again, then the uptrend is firmly intact. On the other hand, if XLK fails to make a higher low, and instead retests the $259 support level, XLK could be setting up a more complex H&S pattern \u2013 which could lead to a more significant decline. <\/p>\n\n\n\n For the moment, though, this week\u2019s stick save keeps the bullish trend intact. <\/p>\n\n\n\n Best regards and good trading,<\/p>\n\n\n\n Jeff Clark![\"\"](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2025\/09\/image-2.png\")
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Editor, Market Minute<\/em><\/p>\n\n\n