We’re so back. 

Over the past few days, the S&P 500 (SPY) has ripped 6% higher. Yesterday, it closed at fresh all-time highs for the first time since early June. 

This chart alone is reason to be bullish. But it’s not what interests me most.

I’m most encouraged by what technology stocks have done over the past few sessions. 

Tech, as most know, is the most important sector. It’s the largest, making up 37% of the S&P 500 and 66% of the Invesco QQQ Trust (QQQ). 

Tech also includes the vast majority of artificial intelligence (AI) stocks. AI has been the market’s driving narrative. 

Up until late last week, it looked like we might lose technology stocks. The QQQs had rolled over. Many leading AI stocks were down 30%... 40%... or even 50% off their recent highs. 

It wasn’t looking too hot. But bulls answered the call in a huge way.

One of the most recent bullish developments has been the renewed strength of the “Magnificent 7” stocks. 

Take a look at this chart of the Roundhill Magnificent Seven ETF (MAGS). This fund invests equally across the Mag 7. MAGS has ripped nearly 11% higher over the past week.

That’s an incredibly bullish development. After all, we’re talking about the market’s largest stocks. 

But it’s not just the big boys. Tech stocks have rallied across the board over the past week.

Here, we’re looking at the performance of the Invesco S&P 500 Equal Weight Technology ETF (RSPT). Yesterday, RSPT ripped nearly 6% higher.

More important, it broke a downtrend that’s been in place since early June while reclaiming its rising 50-day moving average in the process. 

With tech, software has been a standout group. The iShares Expanded Tech-Software Sector ETF (IGV) just broke out of a base that it’s been building since early June.

Not only that, but several individual software stocks have cemented themselves as market leaders in recent weeks. Look at Datadog (DDOG), Snowflake (SNOW), and the leading cybersecurity stocks. 

What about semiconductor stocks?

This group still has some work to do. The VanEck Semiconductor ETF (SMH) has ripped 15% higher since last Thursday. However, it’s still trading below its 50-day moving average.

Semis are, without question, the single most important industry group.

If they can get back on track in the coming days, it could be “all systems go” for technology stocks. It would be awfully hard to be bearish in that scenario.

In fact, I’m already putting money to work in my premium trading advisory, Express Trader.

We added two new positions yesterday that should do well as tech stocks recover. My PRO Meter is also confirming bullish market conditions and a shift in market sentiment.

If you’re looking to take advantage of this market without spending your days glued to a screen, consider joining us in Express Trader. Every Tuesday, I send members my strongest trade ideas, with simple buy and sell instructions.

Go here to upgrade today.

Justin Spittler

Director of Trading, RiskHedge