With an eye toward May, the S&P 500 Technology Sector surged 4.2% in May 2013, making it the third-best of the 10 S&P 500 sectors. From April 15, 2013 to May 31, 2013, QQQ jumped almost 7% while XLK, the iShares U.S. Technology ETF (NYSEArca: IYW) and the Vanguard Information Technology (NYSEArca: VGT) all returned more than 5%. [Buying the Dip With Tech ETFs]

If favorable seasonality comes to pass for tech stocks and ETFs this year, it will be the result of one of two scenarios or the combination of both. One scenario is ongoing strength in old guard tech names, which would benefit ETFs such as XLK or VGT.  The other is a rebound in Internet and social media stocks, which would lift the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and the PowerShares NASDAQ Internet Portfolio (NasdaqGM: PNQI), among others. [A Bounce for Internet ETFs]

Tech Sector Seasonality

Chart Courtesy: EquityClock.com

Tom Lydon’s clients own shares of Apple, Google and QQQ.