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It's not a bad thing for America, Americans, or the American stock market that the largest companies in the country are going up in price. The best players are scoring a lot of points. That's perfectly normal. In fact, if you go back and study every bull market over the past 100 years, you'll notice that technology is a leader in almost every single one of them, writes JC Parets, founder of AllStarCharts.com.

Tech stocks doing well, and outperforming other sectors, is just a classic characteristic of a bull market.

The two-year anniversary of this bull market is today, June 16. That’s when the new lows list peaked at the end of the last bear market that first got going back in 2021.

Here, take a look for yourself. These are the returns for every sector going back to the beginning of this bull market:

Technology is a standout leader. But Communications and Industrials are rounding out the top three. Then Financials and Consumer Discretionary represent the rest of the top five.

These are the types of sectors you would expect to see leading during bull markets. More defensive areas like Real Estate, Utilities, and Consumer Staples underperforming is also perfectly consistent with other bull markets from the past.

There are opportunities to buy stocks here. The question to ask is: Sure, but which ones?

About the Author

JC Parets is the founder of All Star Charts and one of the most widely followed technical analysts in the world. All Star Charts is a research platform for both professional and retail investors, covering US and international stocks, interest rates, commodities, and forex markets.

In 2017, Mr. Parets launched "Technical Analysis Radio," a podcast dedicated to technical analysis and the technicians who practice it. He specializes in finding the most opportunistic risk vs. reward propositions, while at the same time bringing a top/down approach to the marketplace.

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