Alternative Viewpoint:
There is no question technology is an unloved sector and perhaps the old adage comes into play, “to buy when there is blood in the streets.” The technical damage within the sector will take time to work itself off but nothing goes up, or down in a straight line. It would be a lonely view to be bullish here but there will be some volatility in September for sure. That will make for some possible tactical plays for market participants to trade around core positions. The daily chart below of the XLK shows a potential decent long scenario as the ETF trades back into a bullish island reversal at the still upward-sloping 200-day SMA. Its WEEKLY chart shows a doji candle the week ending 7/12, which was also the middle week in an evening star pattern. The week ending 8/23 traded into the middle of that formation and now is trending lower again. The MONTHLY chart shows August with a long-legged spinning top candle, in a very wide range similar to what occurred in August 2015 and March 2020 (both at the 50 MONTH SMA). Those were turning points that sent the QQQ higher, but last month came from an extended position. Use the 200-day SMA on the daily as your navigator short term, and one must admit they are WRONG with a CLOSE below that line.