Chart of the Day - Monday, November 6, 2023

Today's Chart of the Day was shared by Austin Harrison (@meanstoatrend). It's a ratio chart of the Technology sector vs. the S&P 500. Technology was the strongest sector in the first half of the year. However, it's been digesting those gains since the Summer. In that time, this ratio has formed a five-month base within an uptrend, and resistance has been tested several times. Technology is the largest sector of the S&P 500 by a wide margin, representing more than 28% of the index. A breakout from this ratio would be very beneficial for the S&P 500 as it would mark renewed leadership from the largest and most important sector.