Will Tech Turn Lower?

Happy Sunday.

This market is manic.

The small-caps are the only positive major index in 2026. Last week, the Dow dropped -2.95%, and is now down -1.11% YTD.

The S&P 500 volatility index (VIX) settled at its highest weekly close since April 2025 as tensions in the Middle East fail to deescalate. 

Tech looks tipsy. $XLK closed at its lowest weekly price since mid-November. 

Software stabilized. 

But the stalwarts - the magnificent seven - sag lower. 

Semis have stalled. $SMH closed at its lowest price since early-January. 

And financials are the worst performing sector YTD. Not bullish. 

Energy is surging exponentially, but I’m proceeding with caution, and preparing for tech to experience a sharp move lower. 

There is a silver lining of relative strength in aerospace + defense - specifically the drone stocks. 

The Rex Drone ETF $DRNZ gained +4.49% on the week and looks to take out its January 16th all-time high.

It's shaping up to be another wild week. Please proceed with caution.

Disclosure: This is not financial advice.