This line tracks the S&P 500’s “Old Era” sectors, the nine outside technology and communications, measured against the full index. Chronic underperformers since 2011, they spent 15 years grinding lower before the ratio broke above its long downtrend this year. The last comparable breakout, in late 2000, was followed by more than a decade of outperformance. One move does not make a trend, but it is the clearest sign in years that leadership may be broadening beyond the largest technology names.
Source: Paulsen Perspectives