Symbol: FFIV

Software (IGV): The software benchmark fell more than 5% last week and remains under distribution below its 50-DMA
($333). This is its worst weekly performance year-to-date since declining ~9% in the first week of January. The index is
now at risk of breaking below its March lows ($300.84). RS line is at its three-year lows, with an RS Rating of 29 and an
A/D Rating of D+, reflecting the underperformance in the last month. Ten of the 11 software industry groups remain weak and ranked below 100 (1= best, 197 = worst). While Cybersecurity continues to remain the only exception (rank: 60), the group and high quality constituents (PANW and FTNT) were unable to avoid the broad-based distribution. Meanwhile, software giants IBM and SAP reported their Q1 results and reiterated that technology spends will remain elevated this year even in the face of multiple macro-economic headwinds. High profile companies reporting this week include MSFT, NOW, and DSY.FR, all trading at or near their year-to-date lows. A break lower across large cap software
constituents could lead to accelerated distribution across the IGV. Software names breaking out remain few and far
between – VRNT is the only standout name. Given the weak price action, we maintain a cautious outlook on the IGV