Although the S&P 500 (SPY) is down around 1% over the past week, there are two sectors that have made a push higher: Communication Services (XLC) and Technology (XLK). While these moves have left both sectors in overbought territory, a snapshot from our Trend Analyzer tool shows that Tech’s rally has brought it into the green YTD.
Technology’s outperformance is nothing new. As shown in the relative strength charts from our Sector Snapshot below, Technology has been a serial outperformer versus the S&P 500 for pretty much all of the past year (a rising line indicates outperformance versus the S&P 500 and vice versa). As for the other sectors, Health Care has also seen some drastic outperformance over the past few months. Communication Services and Consumer Discretionary have also seen some outperformance in recent weeks. Contrary to Technology, Energy, Financials, Industrials, and Materials have all been consistent underperformers over the past year. Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer, Sector Snapshot, and much more.