In absolute terms, however, SPY typically sees volumes that are 15-20X that of RSP. In the current month, both have plunged.

In Conclusion

Three factors that will likely clash over the next few days. The first: a slew of upcoming earnings releases in both „tech“ and „ex-tech“. Across the board, they can be expected to be „so-so“: overall positive but no massive standouts. In the past five years, even a „so-so” release would have triggered a strong rally manifesting for a quarter or even longer, given the large variety of players. In the present day, there are fewer players and they’re largely either „institutional“ or „professional“. However, of the entire gamut of sectors, „tech“ has tended to attract higher conviction from the clients of said „institutionals“.

The second factor is that sector rotation is both desirable and natural, thereby making it expectable. The affordability crisis is by no means over: easing of monthly CPI or not, the accrued elevation of costs for the average American consumer ensures that any over-optimistic forward outlook in any company with a broad consumer base would be (and should be) questionable.

The third factor is the relatively shallowness of the investor pool. Even a relatively smaller lot of trades are manifesting as a rally in intraday sessions with an inevitable correction either later on in the day or week. Simply put: while the market is looking upwards, there isn’t a whole lot of support for an overly-high jump.

Overall, there is a lot of potential for finding a slew of decently-priced securities outside of „tech“ while Big Tech can be expected to continue to slide in valuation over the course of this quarter. What will confound this would be momentary spikes sparked by modest buy-ins in a shallow market.