(Note: This article was originally published Thursday afternoon.)
The Internet group has been leading the technology sector higher this week. The standout performer in that group is Google. The chart below shows Google (GOOGL) surging through its spring high to the highest level since last October. Interesingly, the stock has been a relative underperformer, as shown its falling relative strength line (above chart). The good news is that the stock's RS line has just broken a falling resistance line extending back to February 2014. Good absolute performance by the stock (upside breakout), combined with a relative strength line just starting to turn up, is a healthy combination.
(Note: Click here to watch John's interview during last weekend's ChartWatchers webinar.)