Here's another way to look at this: XLK is the only industry ETF that is positive and above SPY during the last month.

You are a wealth of insights! Thank you!

falling multiple while price climbs means earnings are doing the work, not hype. Rest of the market still hasnt caught up tho

Tech earnings keep supporting market valuations.

That is by design until EOY

Energy, healthcare, metals/mining, are all positive YTD.

Tech carrying the market is not automatically a bubble when earnings are carrying tech. The bigger concern is how little help it is getting from everywhere else.

Even with data centers real estate is down 8%?! Could this eventually hit the housing market?

The impressive part is that tech is doing this with the ten year above five and without multiple expansion. The uncomfortable part is that almost every other sector has stopped helping.

Tech carrying the whole market while everything else is deep in the red really shows how narrow this rally has gotten. You and @reynosismo_ are the two accounts I most enjoy following

Tech is sucking assets from the other sectors. Not exactly zero sum, but it's a factor.

One number captures it: the gap between the cap-weighted S&P 500 and its equal-weight version. With the top 10 names near 40% of index weight, record concentration, the index can rise while the median stock falls, as those sector lines show.

That is the tension. Strong tech earnings can make the index look healthier even as market breadth deteriorates underneath it. If earnings keep outrunning prices, valuation compression is real. But concentration creates a different risk: fewer companies are being asked to justify more of the market’s return. The next test is not whether tech keeps rising. It is whether earnings strength begins to broaden beyond tech.

Tech = semis $SOXX

Narrow tape like this works until it doesn’t. Everything else is just waiting on rotation

When interest rates go up, stocks go down. It’s not going to get any better anytime soon. When the unemployment rate goes up after the holidays. Boom

breadth this narrow usually raises the stakes for any change in leadership worth tracking

Strong earnings make the valuation story less scary

The real question is: What stocks will benefit the most when the capital rotation from tech stocks into other sectors occurs

Are you looking at Shiller P/E? It correctly adjusts earnings for seasonality etc and has gone from 39 to 41 YTD

Tech carrying the entire market on its back while every other sector bleeds is the definition of a dangerously narrow rally. Earnings are doing the heavy lifting now, but multiple compression is lurking. @RitadeCSB always nails the real breadth of this market better than anyone.

Tech is the only sector that looks reasonably valued relative to its growth . You pay big price but you get bigger growth

ssshhhhhh