Technology Green Shoots?

I have always been taught that the best breakouts/trades tend to work right away. If that is the case, the ratio chart below of  “equal weight” technology compared to the top-heavy waterlogged XLK is a good sign. What this suggests to me is that first the “generals” have already been shot, and that solid breadth is starting to occur. None of the top holdings in the RYT represent more than 2% of the fund, while within the XLK the top 2 components, MSFT and AAPL, make up nearly half of the fund. Now, this is not to say that those 2 aforementioned behemoths will not act well, in fact, APPL recorded a bullish engulfing WEEKLY candle last week. Rather it suggests more healthy participation among the group and we know that if any rally is potentially going to be long-lasting technology must play a role.

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