When it comes to the US markets, Tech stocks are the heavyweights.
They make up roughly 30% of the S&P 500 and hold significant weight in the major indexes.
These are cash-rich, profitable companies driving innovation across the economy.
And while some are shouting about “bubbles” and how “expensive” these stocks are, Tech keeps winning right in front of them — with plenty of room to run.
The Technology Sector $XLK just broke out above its old dot-com bubble highs relative to the S&P 500 $SPY.
After a year stuck below that level, it’s finally pushing into new all-time highs.
It took 25 years to get back above that peak.
If this breakout holds, there’s really nothing else to own but Tech.
However, if it fails and slips back below those former highs, rotation could pick up. Small-caps, Healthcare, and maybe even Energy could take their turn leading the market higher.
Tech is in the driver’s seat — for now. Keep an eye on the wheels.
Stay sharp,
Alfonso De Pablos, CMT
Director of Research, All Star Charts
Editor's Note: We’ve been pressing the gas with Breakout Multiplier, and one of our recent trades is delivering massive results.
On September 9, we bought the $RGTI 10/17 $20 calls for $0.59. Just a month later, this trade is up 4,646%.
This is easily the best trade we’ve put on all year.
