Today there was quite a reversal in financial stocks at the "expense" of technology. The chart below plots a ratio of the XLF Finance SPDR vs. the XLK Technology SPDR. Note today's surge:
What is interesting is the "fits and starts" seen over the plotted timeframe since April. This leads us to assess that what we saw today was merely a reversion to the mean for tech, and a resumption of the uptrend (along with the broader market) for financials.
Note the smaller charts below: XLK (Tech) is settling near its 50-day moving average (not there yet so some more potential downside in store). Financials (XLF), with their strong surge moves their index back to the "up" trendline.
So in our view, just a bit of sector rotation unwiding the excesses we have seen in tech, with laggard financials catching up.