BTIG analyst told investors in a note Monday that they see "meaningful downside risk for tech broadly over the coming weeks."
The analysts stated that while technology is up 35% this year, its medium-term momentum continues to roll over, with many key ETFs having broken significant volume-based support levels.
"Conversely, S&P 500 Healthcare is essentially flat YTD, but starting to show signs of upside momentum, particularly on a relative basis," the analysts wrote.
"Of course, small-cap HC and biotech continues to struggle, but the larger-cap and more defensive HC names can offer a hideout while tech remains under pressure," they added.
Analysts note that rates remain sticky, with 10-year real rates testing the upper end of their year-long range. "This should continue to benefit energy which is breaking out with good momentum and relative strength," they concluded.