The S&P 500 has been closing in on new 52-week highs as the index gains another 1.3% headed into the long weekend. Although the index has been moving higher, looking at relative strength lines across the S&P’s eleven sectors, it would be hard to tell. Indicating what has broadly been mediocre breadth at best, the only two sectors with relative strength lines that are currently moving higher are Tech and Communication Services. The former has made a vertical move higher over the past few days in the wake of the surge in NVIDIA (NVDA), while the climb in Communication Services has been more steady. As for the other sectors, relative strength lines have been falling off a cliff for everything except Consumer Discretionary, which has been flat.

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Again, Tech has led the way higher with a sharp move this week. The sector is now extremely overbought, trading 3.23 standard deviations above its 50-DMA; the fifth most overbought reading on record. Since 1990, there have only been a handful of times in which the S&P 500 Tech sector has traded at least 3 standard deviations overbought, with the most recent being roughly six years ago. But to find the last time the sector was as extended as it is today, you’d have to go all the way back to early 2004!

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