For a sector that typically outperforms during market rallies, this was very unusual. In the last week however, something seemed to have changed in the market.
In the last 2 weeks since the minor bottom, the SPY has jumped 3.5% or so.
Tech however has jumped 5.5% in that same time frame. Now you may say that isn't much, and its true, while large, its not a huge difference in absolute terms. However, for a sector that has been underperforming for almost half a year now, its notable that something may have changed. Is the market sectors finally starting to rotate out of the defensives and non-cyclicals that's been powering this rally?
Looking at the Health Care sector, one of the big drives of the S&P in the last 4+ months, you notice that in the last 2 wks, it has leveled off. So the recent S&P jump is now starting to be driven by a different sector. This is a somewhat healthy observation as it means there is other market leadership and the breadth of advances is improving.