75% of the S&P 500 technology sector components have now risen above their 200-day moving averages, the highest level since October 2024, ending a 219-day streak below this level; the Nasdaq 100 has also risen to approximately 69%. This indicates that the current rally is spreading from a few semiconductor and large-cap technology stocks to more software, hardware, and IT services companies.
This change is more significant than the index hitting new highs. When the S&P 500 rose in May, only about 53% of stocks across the entire market were above their 200-day moving averages, indicating a highly concentrated market rally; now, with the long-term trend of the technology sector clearly improved, the impact of a pullback in a single leading stock on the sector is expected to decrease.
