Technology In The Top Spot

While a handful of stocks in the Tech sector have a disproportionate impact on the S&P 500, leadership from Tech is not strictly limited to these stocks.

Key Takeaway: The Technology sector is is dominated by a handful of stocks and the S&P 500 is dominated by Tech sector. But leadership from this sector is not limited to strength from a just a few mega-caps.

The ratio between Technology and Industrials has eclipsed its Dot-Com era peak. The ratio between Technology and Financials has gone similarly vertical in recent weeks.

Technology strength has fueled the stock market's move to new highs even as fewer stocks remain in up-trends.

While a handful of stocks in the Technology sector have a disproportionate impact on the sector and the S&P 500 overall, leadership from Technology is not strictly limited to these stocks. Across all four of our various sector rankings (S&P 500 cap-weighted, S&P 500 equal-weighted, mid-caps, and small-caps), the Technology sector is in the top spot. It may be a top-heavy sector, but there is evidence of broad leadership.