Tech's lead over banks faces another test
QQQ•QQQ•QQQ•QQQ•Technology stocks have outperformed banks in 2026, with the S&P 500 Technology Sector Index up more than 28% versus a 1.7% gain for big banks. The Tech/Banks ratio eased to 11.7 on Monday ahead of a busy week of third-quarter bank earnings.
The S&P 500 Technology Sector Index has risen more than 28% this year, compared with a 1.7% gain for the S&P 500 Banks Index. The broader S&P 500 is up 14%, while the S&P 500 Financials sector has gained 0.5%.
The Tech/Banks ratio peaked at a record 12.41 on June 1, then fell to a late-July low of 9.47. It rebounded to 12.22 last Wednesday before easing to 11.7 by Monday’s close, ahead of a busy week of third-quarter bank earnings.
Support for the ratio is at 11.29 and 10.68, with the 200-day moving average near 10.15 and a long-term trend line just above 9.00. A move above the October 6 high would put the May peak and long-term resistance near 12.75 in focus. The article says the ratio’s long-term support and resistance lines are converging and could meet around mid-2029.
