Pro Analysis

This chart shows the bull market just got healthier

Bull and matador
Rafael Marchante | Reuters

The latest leg up in the S&P 500 has been propelled by lagging cyclical groups like technology and banks, a healthy development that could bode well for the strength of this bull market, said one chart analyst.

"While it is easy to say the market is 'overbought,' or 'due for a pause,' the rotation beneath the surface from defensive to cyclical sectors is constructive, and therefore we maintain our bullish view," MKM Partners' chief market technician, Jonathan Krinsky, wrote in a recent note to clients.

As a result, the strategist recommends investors use the recent transition as an opportunity to sell high dividend yield sectors like consumer staples, telecoms and utilities, and instead buy selectively in groups such as financials and tech.