Gianni Di Poce just flagged something bulls have been waiting months to see. Technology didn’t just lead last week. It rallied hard enough in a single four-day stretch to reclaim its spot as the top-performing sector over the last 52 weeks.
The performance spread between energy and technology was almost 10% last week alone.
That kind of snap-back matters because tech is notorious for leading out of market bottoms. And right now, Gianni sees conditions lining up for exactly that scenario.
The current rally off the March 31st low is now seven days old. That puts it on the verge of being one of the longest sustained rallies we’ve had all year. The late January bounce lasted about seven days. The mid-February rally went eight. This market is holding onto gains better than it has in months.
Gianni is also watching a historical pattern that’s about to break in one direction or the other. Every time crude oil has spiked 100% or more in a short window, stocks have corrected 20%. But we haven’t seen back-to-back 20% annual corrections in decades. One of those rules is going to give.
Here’s what Gianni broke down in tonight’s video:
- Technology reclaimed its place as the #1 performing sector over the last year after a single week of outperformance, with a nearly 10% spread over energy
- Semiconductors are outperforming with SMH trading near its highs while the broader market pulls back
- Small cap tech and the Russell 2000 are down the least among all indices, signaling serious relative strength and potential leadership ahead
- The VIX remains elevated, and Gianni needs to see a significant crush in volatility alongside lower oil before confirming a full bottom
- Gold and silver miners like Wheaton have corrected into potential buying zones, with Gianni watching for a secondary setup within the next week
Gianni is positioned to benefit from more upside if the bottom is in, but he’s carrying enough cash to absorb a reversal. He’s not bearish anymore, but he’s clear that follow-through from tech this week is the signal bears need to worry about.
