The Communication Services sector went from being the worst sector in 2022 to one of the best in 2023. Now it’s beginning to fall back out of favor.
Relative to its benchmark, the S&P 500 index, the sector made it all the way back up to its mid-2018 lows. That’s also where its underperformance accelerated last spring and where it was rejected on a summer rally. That area is acting as resistance once again.