The growing dominance of the U.S. stock market heading into 2026 is also benefiting sectors other than technology. Cyclical sectors such as energy and materials have performed best since the start of the year, but further rotation into other value-oriented sectors is expected. The real estate sector is gaining momentum both in absolute and relative terms. Data center REITs in particular are an interesting group to watch for increased participation given their ties to the AI investment theme. The iShares U.S. Real Estate ETF (IYR) has remained within a trading range for the past year, contributing to its underperformance versus the S&P 500 Index (SPX). However, medium-term momentum turned positive in late January, increasing the possibility of a breakout of the resistance near $98. If the price continues to move above this level, it will aim for a 2024 high near $103. The REIT’s relative performance has also stabilized following an oversold “buy” signal from the DeMark indicator for IYR vs. SPX, supporting improved performance over the next 6-8 weeks. Simon Property Group has gained about 7.5% over the last year, making it a top-five performer within the real estate sector. Its technical picture is bullish, highlighted by a new long-term uptrend after breaking above long-term resistance near $191 to new multi-year highs. SPG has also regained support from the Monthly Moving Average Convergence/Divergence (MACD) indicator, further increasing confidence in the uptrend. Beyond current levels, significant resistance will not emerge until around the 2016 high of $229. Data center REITs like Equinix appear to be reversing a cyclical downward trend. A bullish reversal will be confirmed if EQIX sustains above the cloud model resistance near $848 for the second consecutive week. If this materializes, it would be a bullish development in the long term, suggesting that EQIX could trend higher toward final resistance near $994 over the coming months. EQIX appears to be extending, but if there is a breakout, we will have to wait for positive momentum. Overall, REITs have improved from a technical perspective with sector rotation year-to-date, with improved momentum and what appears to be a solid relative performance backdrop compared to SPX. We’ve already seen a breakout in Simon Properties, and Equinix appears poised to see a breakout of its own in a positive sign for the broader sector. —Katie Stockton and Will Tamplin. Get free access to Fairlead Strategies research here. Disclosure: None. All opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, its parent or affiliates, and may have been previously disseminated on television, radio, the Internet, or another medium. 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