Technology Seems to be Waking Up
Brittany Stone - Jun 27, 2025
After being under pressure for almost a year, Technology seems to be back on the horse again.
Technology seems to be waking up after almost a year long hibernation. The chart below shows a relative performance of the technology sector vs S&P500. The rising black line represents technology outperformance.
This recent breakout is very promising for stocks overall and for the US stock market, given how technology heavy it is.
Momentum and participation divergence that I mentioned last week is still a concern. I would not rule out some sort of a short-term pullback, but a relative strength in the Technology sector gives me more confidence to recommend using market weakness to accumulate shares.