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Market Extra: More cheer for the bulls as tech stocks, financials take the baton and lead the rally

One worry about the stock market has been that its star sectors have been utilities, telecoms and other defensive plays, but that concern may be fading.

Analysts are now highlighting the strength shown by tech XLK, +0.97% , financials XLF, +1.91% and other “cyclical” stocks. Such sectors are generally associated with boom times, rather than tough economic periods.

“Over the last month, the highly cyclical sectors such as technology, materials, and financials have seen very large gains,” says Jonathan Krinsky, chief market technician at MKM Partners, in a note dated Sunday.

Meanwhile, consumer staples XLP, +0.17% , telecoms XTL, +0.92% , utilities XLU, -1.44% and bonds BND, -0.33% have begun to sell off, he adds.

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