Markets closed out last week near the highs, courtesy of the tech sector. This is the exact type of leadership we need to see if this bull market is going to continue.
To be clear, one-week leadership isn’t as significant as 30-day or even year-to-date leadership.
So even with tech’s solid rebound and the plethora of setups I keep seeing under the surface, let’s check in on the sector performance scores to see if there’s anything else worth noting...
Tech Opened the Window - Can Bulls Plow Through It?
In recent weeks, I talked about how it was absolutely necessary for tech to make a comeback in order to save this market from a further decline. Well, that’s exactly what happened last week, as the XLK tech-sector ETF stormed back into fourth place amongst the 11 S&P sectors.
But if we look across a longer time horizon, we note that concerns remain under the surface of the market. First thing’s first - we don’t want to see utilities as the top-performing sector year-to-date.
And even though real estate has a good story behind it, the sector is also associated with outperforming in the later-stages of equity cycles. So for now, we’re all at the mercy of tech. Either it follows through this week and we start seeing new all-time highs in the indices, or we could be in for an abysmal autumn in the stock market.
Keep you posted as always,