Lowry Weekly Sector Commentary

Although this report has spent a lot of time looking at the Information Technology Sector, its importance to the entire market demands frequent analysis. The most important observation to be made this week is the split between large-cap Tech stocks and the rest. Last week, the capitalization-weighted SPDR Tech sector ETF, and the sub-indexes for semiconductors, computer hardware and computer software, all reached new all-time highs. The Lowry equal-weighted Tech Sector Index is still languishing in the lower half of its recent range between its Feb. 12 high and March 8 low. The conclusion is that large-cap Techs are likely back on track while smaller Tech stocks are still not performing. The question is, which will adjust to the other?