A 200-Day Divide

The article is a technical breadth review of the S&P 500 Technology sector, noting that 75% of tech stocks closed above their 200-day moving averages for the first time in 219 trading days. Historically, that kind of breadth improvement has been constructive for future sector returns, with prior instances averaging 33.4% gains over the next year and no negative outcomes. However, the piece emphasizes that technology is only middling versus the broader market: six S&P 500 sectors currently have a higher share of stocks above their 200-DMAs, led by Financials at 84.2%. Utilities is highlighted as the weakest sector, with only 29% above 200-DMA and relative strength at a 52-week low, underperforming the S&P 500 by 17.5 percentage points. Market takeaway: tech momentum is improving, but leadership remains broad and not yet exclusive to technology.