The market leaders are now lagging.
Onetime leaders in the information technology and REITs sectors are now trailing the market. Meanwhile, energy and financials are the best performers so far this week after getting crushed earlier in the year.
CNBC's Jim Cramer and two other experts weigh in on the sector rotation.
Dave Kostin, chief U.S. equity strategist at Goldman Sachs, says the best tech stocks could still lead.
"Look at some of the fundamentals as to where the economy is going. And some of the technology companies still remain growing more of the services-oriented [offerings] in terms of subscriptions and software as a service with some visible revenue growth … It's a key attribute that portfolio managers at this juncture are really looking for in an uncertain environment … Where do you find investment opportunities? It tends to be where there's more visible revenue growth."
Stephen Suttmeier, chief equity technical strategist at Bank of America Merrill Lynch, sees this as just the beginning of a broader move.
"Yesterday was the start of a rotation. I mean, you saw growth get trounced versus value. You saw defensives lose versus more cynical areas. So I mean, I don't think that it's the end of the world for technology, or you know, software names, but I think if, for instance, if people came in very pessimistic on equities they were pretty bullish on bonds, so yields are backed up so maybe there is a bid here for financials for a little while. That could pile all this higher."
Jim Cramer, host of CNBC's "Mad Money," says even the outperformers in tech and other sectors are being swept up in a wave of selling.
"Why not go back to value? The answer is because ... they're now hitting even the companies that have been consistent. Procter has been a massive outperformer, and they're getting hit. The companies, by the way, that are being hit almost entirely beat the market, beat their estimates, but no one really seems to care."