When lagging sectors suddenly start outperforming, it often signals a shift in market dynamics—and rarely a positive one. This contrarian move typically indicates rotation out of strength and into weakness, a classic precursor to broader market weakness. Traders watch for this pattern closely: the moment beaten-down corners of the market surge can be your cue to tighten risk management. History shows these reversals often come right before significant corrections, making sector rotation analysis a critical part of portfolio strategy.