S&P 500 Technology Sector: 75% of Stocks Reclaim Above 200-Day Moving Average, Historical Average Indicates Potential Upside of Up to 33.4%

BlockBeats News, August 14th. Last week, 75% of the stocks in the S&P 500 Technology sector closed above the 200-day moving average, marking the first time since October 2024 that they have touched this threshold, ending a prolonged downturn lasting 219 trading days. This was the 9th longest downturn on record, with the longest such period lasting 759 trading days, ending on April 22, 2003, after the bursting of the Dot-Com Bubble. Historical data shows that after the end of such extended downturn periods, the Technology sector has seen an average increase of 2.5% in the following month, 7.3% in the next 3 months, 15.5% in the next 6 months, and a substantial 33.4% increase over the next 12 months.

Meanwhile, 69% of the stocks in the Nasdaq 100 Index have now surpassed the 200-day moving average, nearing the highest level since July 2025. The significant improvement in this breadth indicator indicates that the rebound in tech stocks is shifting from a few heavyweights to a more widespread sector, and market momentum is building up. Previously, the tech sector faced multiple pressures such as the semiconductor sell-off, deleveraging of ETFs, and concerns about AI capital expenditure. This technical recovery now provides positive support for the subsequent market trend.