Aimless Tech Group?
Interesting look here at the top performing S&P sectors on a YTD basis as of Mondays CLOSE. Notice the top two performers in energy and financials, that were two of the worst three actors in 2020, with the XLE and XLF falling 33.7 and 1.7% respectively. Each are both inflationary concerns with crude prices and yields, which if these groups continue to lead could put pressure down the road on the Fed to clamp down. That would of course have big market implications, but that is seemingly well into the horizon for the moment. Technology, via the XLK, resides near the bottom of the pack, with almost 2 months into 2021, and remember this group basically went wire to wire in the top spot throughout last year. Is the space taking a breather after that herculean effort, or is something more ominous taking place (keep in mind technology was easily the best actor in both 2019-2020 up in the 50% neighborhood, not a typo)? The Nasdaq was rebuffed at the very round 14000 number, and perhaps a move back to its rising 50 day SMA is in order, a line it has not come into contact with since the election last year. That would be an initial touch of the line following the bullish ascending triangle breakout at 12500, taken out last November, often a solid entry point.