Tech has been doing the heavy lifting...

Yesterday, the State Street Technology Select Sector SPDR ETF (XLK) closed at a record high yet again. 

Mega-cap tech stocks are a huge reason for this.

The Roundhill Magnificent Seven ETF (MAGS), a fund that invests equally across the Mag 7 stocks, recently broke out of a beautiful base. It’s also trading at record highs. 

But this isn’t one of those “it’s just seven stocks!” markets. All sorts of tech stocks are participating. 

Take a look. The Invesco S&P 500 Equal Weight Technology ETF (RSPT) broke out of a gorgeous base last week. 

These are exactly the sorts of stocks that we want to see leading the market. After all, technology is the market’s largest and most important sector.

But what about the rest of the market?

I think they could join the rally soon. 

The chart below shows the performance of the NYSE Composite Index (NYA).

The index tracks stocks listed on the New York Stock Exchange, including international companies. It gives us a better sense of how the broad stock is performing compared to the S&P 500 (SPY) or the Invesco QQQ Trust (QQQ). 

We can see that NYA pulled back to its February highs, and buyers stepped in.

That prior resistance is acting as new support. This suggests other stocks could soon join in what’s largely been a tech-driven rally. 

That would provide a huge tailwind for the indices… and give us a much bigger pool to trade in.

In my Express Trader advisory, I don’t wait until those moves are obvious to everyone else. Instead, I’m constantly looking for the stocks just starting to wake up. Then I send members the three setups I like the best each week, with clear instructions on how to play them.

Upgrade to Express Trader here.

Justin Spittler

Director of Trading, RiskHedge