These 2 Sectors Are About to Lead the Market Back Up
After a turbulent phase driven by macro concerns and tighter liquidity, the market now appears to be in a state of exhaustion. Numerous signals are now in oversold territory, a position from which sharp rebounds often emerge. Assuming risk appetite continues to increase, technology and communication services could be among the first sectors to recover, backed by robust fundamentals and charts that are starting to appear much more appealing.
In this latest sell-off, all assets have been hit hard, barring the U.S. dollar (DXY). The entire market has repriced, with most sectors dropping several points in valuation. Tech stocks reprice from an average 31x earnings in October 2025 to 20.5x today, for an example of just how much we’ve moved in a short amount of time. That is a signal, among others, of opportunity. The market is already flashing oversold indicators galore, and so the question becomes, when the bullish rotation restarts, what will lead the way?