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Stocks capped off another strong week, and we saw a notable rebound in the technology sector too. This is a very bullish development in and of itself, especially after we saw materials and energy lead during the previous two weeks.

But can this rebound be trusted at this stage of the rally? If anything, it was an attempt by bulls to repair the initial cracks in the rally, and they deserve applause for their efforts.

While the short-term picture is getting a little fuzzy, I want to take a moment today to appreciate how the longer-term outlook is shaping up. 

The Long-Term Trend is Getting Stronger
 

Can we just take a moment to appreciate the bullishness of this leaderboard? It’s been around a year since we last saw a leaderboard this bullish. There’s not a single defensive sector in sight.

The picture gets even more bullish if you go back to which sectors have led since the April 7 low. We keep hearing about the struggles of consumers, but since April 7, the market seems to have a growing level of confidence in them.

The very clear theme here is growth. Communications (XLC) emerged as the 1-year leader, and let’s be real, there’s a lot of overlap between that sector and technology (XLK). 

Industrials as the year-to-date leader remains a bullish sign too, and if you do the work, you’ll see that many of those names have tilts towards technology as well.

As long as we keep seeing leaders like this, keep buying those dips. The bull market is alive and well.

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