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Time to refresh comments on IGV-2.01% , the Ishares expanded Tech-Software ETF, as this is now exceeding 90, and officially breaking out above two prior peaks from this year along with Nov 2021 in a very bullish Cup and Handle pattern back to new all-time high territory. While Semis still are outperforming Software on an intermediate-term basis, Software has shown better relative strength since this Summer. Note, this Software outperformance is not the normal MSFT-1.27%  led rally. Rather, it's being led by PLTR-1.49% , ORCL-5.23% , NOW-2.34% , and strong movement out of the likes of CRM-2.77% , PANW0.34%  which i suspect should rally back to all-time highs. (More on this topic in tonight's report)

2 hours into trading, we see S&P has just surpassed yesterday's intra-day peak (ES-1.92% _F- 5616) by S&P Futures which has helped this rally to accelerate. Breadth is just mildly positive, and Financials and REITS are the only two sectors higher today on an Equal-weighed basis, Technology is largely flat, but XLK is up +0.28%, powered higher by a near-4% bounce out of CRWD-2.75% , along with AVGO-2.23% , FSLR-0.99% , NOW-2.34% , and PANW0.34% , all which are higher by more than 2%. Software stocks are leading Semis today, and NXPI-1.42% , ON-6.69% , and TXN-0.79%  are all lower by more than 3%, and SOX is lower by -0.85% at a time when XLK is outperforming. Transports are lower by 1%, but Small caps are showing stellar strength, up by 1% (IWM-2.21% ) as the SummerOfSmallCaps has arrived. Both US Dollar and Treasury yields are pulling back from earlier bounce attempts, TNX still down -0.02bps - Target initially for S&P Futures lies near 5721

Technology's gains today on an Equal-weighted basis are +0.45%, which are swamping the +0.11% seen in XLK today. Thus, while stocks like MPWR-4.79% , NOW-2.34% , WDC-1.94% , NVDA-2.90%  are down more than 1%, the Technology sector is actually outperforming the ^SPX-1.54%  today, thanks to a strong showing from ON-6.69% , TRMB-3.18% , ACN-2.22% , SNPS-1.88%  and PANW0.34%  which are all higher by more than 1.75%. Technology as a sector is just exceeding prior lows from mid-March after yesterday's successful breakout above late April peaks. This is a very bullish move for Tech, and should help this group continue higher on an absolute basis. As discussed, Tech also remains an Overweight and likely will start to outperform ^SPX-1.54%  as Treasury yields begin to fall at a bit quicker pace