Tech Stocks Continue To Lead U.S. Sectors In 2019

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Includes: FNG, FTEC, FXL, IGM, IYW, JHMT, QTEC, REW, ROM, RYT, TECL, TECS, UFO, VGT, XITK, XLK, XNTK
by: James Picerno
Summary

Technology shares remain the top-performing sector in this year's broad-based stock market rally, based on a set of exchange-traded funds.

Tech is winning the performance horse race so far this year, but a bullish bias is conspicuous across sector spectrum.

Most funds are trending positive, based on profiling momentum for all the sector funds with two sets of moving averages.

Technology shares remain the top-performing sector in this year's broad-based stock market rally, based on a set of exchange-traded funds. After stumbling in late-March, the tech sector rebounded in April and still leads the rest of the field by a healthy margin.

The Technology Select Sector SPDR ETF (NYSEARCA:XLK) is up a strong 26.4% year to date through yesterday's close (May 2). The fund's return is comfortably above the second-best year-to-date performance via the Industrial Select Sector SPDR ETF (NYSEARCA:XLI), which has increased 21.0%.

For context, the broad stock market is up 17.0% so far in 2019, based on the SPDR S&P 500 ETF (NYSEARCA:SPY).

Tech is winning the performance horse race so far this year, but a bullish bias is conspicuous across sector spectrum. Even the weakest performer - the Health Care Select Sector (NYSEARCA:XLV) - is posting a gain, albeit a modest 3.8% year-to-date return.

Most funds are trending positive, based on profiling momentum for all the sector funds with two sets of moving averages. The first definition compares the 10-day moving with the 100-day average, a measure of short-term trending behavior (red line in chart below). A second set of moving averages (50 and 200 days) offers an intermediate measure of the trend (blue line). The indexes range from 0 (all funds trending down) to 1.0 (all funds trending up). Based on this data through yesterday's close, bullish momentum remains widespread (80%-plus) for most of the sector funds that comprise SPY, the broad market proxy.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.