“We broke out to the upside recently, showing relatively strong demand,” Wald said. “That’s a pretty good sign, especially that it’s able to post relative gains during this period of market volatility.”
Technology Select Sector SPDR is up 4.2% year to date, compared with a 1.3% gain for the S&P 500, according to Morningstar.
The chart below shows the ratio of the technology ETF versus the S&P 500 fund.
Full disclosure: Tom Lydon’s clients own SPY.