Breakouts Aren't Bearish - 11/15/2023
Yesterday, the Information Technology sector broke out to a new all-time high. If there was any remaining doubt whether the bear market that began in January 2022 had ended, now there is not. There’s nothing bearish about all-time highs, especially when those highs occur in the biggest and most important sector in the market.
Tech’s dominance over the last 6 years is truly something to behold. Take a look at how each of the 11 sectors has performed relative to the index they comprise since the end of 2017:
The Tech sector is so big and has risen so much, that investing in literally any other sector would have yielded a below-benchmark return. It’s hard to think of a more awe-inspiring chart than this. (Or a more depressing one for someone like myself, who spends hours and hours every week looking for opportunities all across the market landscape instead of spending all their time focused on one particular sector).
But don’t be fooled. Just because Tech has been far and away the best place to be, that doesn’t mean it’s the only place showing bullish characteristics.