XLK – 12 Straight Gains Through Tuesday, 12/9, the Technology Select Sector SPDR ETF (XLK) logged 12 consecutive gains, marking the second-longest winning streak in its history, which dates back to 1999. The only longer run happened in February 2017, when it extended to 13. The sample size of one is obviously as small as it gets, but it’s still useful to reference that prior period for historical perspective. XLK – 13 Straight Gains in 2017 As the chart shows, the 2017 streak occurred roughly three months into a strong comeback rally that began in November 2016. When the 13-day run finally ended, XLK then consolidated for the next two months before buyers returned. From there, the uptrend continued through early 2018. We review 2017 a lot from a S & P 500 perspective, so none of this is surprising, but it’s extremely important to keep in the back of our minds. The takeaway: Even though this current streak is almost certainly nearing its end, that alone does not imply the longer-term trend must also end. It’s all about the response after the streak, and so far, every pullback in recent months has attracted strong demand. XLK 12-Day Rate of Change While the 12-day win streak is now the second longest in the ETF’s multi-decade history, the magnitude of the gain over those 11 sessions is not historic. An 8% advance in just over two weeks is a strong overall run, but even going back to mid-2021, it doesn’t register as one of the standout-moves. We can see numerous periods over the past few years where XLK posted stronger 12-day returns. So in one sense, the streak, itself, is one of its best ever — but in another, it’s simply a very good move, not an extreme one. Tech ETF Performance Comparison One key point is that this aggregate Technology rally hasn’t been driven solely by the mega-cap growth names. This chart helps illustrate that. Since the bounce began on November 21, XLK is up about 8.8%, a strong move in a short period. But what’s more notable is the outperformance beneath the surface: The RSPT (equal-weight tech ETF) is up 11.6%, And the PSCT (small-cap tech ETF) is up more than 15%—almost double XLK’s gain. So while the XLK’s long winning streak is getting all the headlines, we shouldn’t view this as a top-heavy, narrow move. Instead, the sector has shown strong breadth across the entire market-cap spectrum, giving the rally a much stronger foundation as the streak continues. XLK – 2025 vs. 2020 – The Blueprint to Follow Before this 12-day advance, remember that XLK dropped about 30% from its February peak to the April low during the crash earlier this year. This was, of course, very similar to the 34% decline during COVID. In both cases, the sector bounced back sharply, with XLK gaining roughly 80% from the low to its subsequent high this time. Back in 2020, XLK ultimately rallied about 90% from the March low through the end of August, before entering a corrective phase. That consolidation was meaningful: the ETF chopped sideways for about two months, declining 15% and 12%, respectively, in two separate pullbacks before resuming its uptrend. This year, XLK has just come off another 12% decline. Even though it’s only one correction so far, the action over the past two weeks — and the current 12-day winning streak — suggests that while higher levels may lie ahead, the path won’t be a straight line. But if the 2020 pattern is any indication, this type of reset and rebound may very well set the stage for the next major leg higher over the coming months and into 2026. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
