🏆 Today's Chart of the Day was shared by @Optuma.
- Technology ($XLK) is once again the best-performing sector YTD, taking back its crown from the Utilities sector today.
- Optuma notes that Tech vs. the S&P 500 ($XLK/$SPX) has returned to its dot-com bubble peak, completing a 25-year base. The ratio already broke out on a monthly timeframe in June, although it hasn't been confirmed on a daily or weekly timeframe yet.
- A decisive breakout would be bode well for the S&P 500, but with Tech already commanding 35% of the index, leadership and concentration risk are becoming indistinguishable.
The Takeaway: Tech is testing its dot-com bubble peak relative to the S&P 500 ($XLK/$SPX). After a 25-year recovery, a breakout would further cement Tech's leadership while boosting the S&P 500.
