Chart of the Day - Tuesday, May 16, 2023

Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). The Technology sector broke out to a new 52-week high on an absolute basis today after cracking resistance around $150. Alfonso points out that it's also breaking out on a relative basis, with $XLK/$SPY pushing up against all-time highs. This ratio has formed a solid base over the past year and a half, and it looks poised for a new leg higher. Technology is by far the largest sector within the S&P 500, representing more than a quarter of the index. While it's bullish to see the largest sector breaking out on an absolute and relative basis, it would be more constructive to see other sectors participating in new highs as well.