Is The Tech Rally Back? No — It Never Went Away

Heading into Monday's trading session, many investors were concerned that the rally in tech stocks had not only come to a sudden end, but a sell-off is underway. But after one of the best trading-day performances in month on Monday, some analysts are convinced the tech rally is back and here to stay.

Over the past two weeks, the technology sector has underperformed versus the broader market, Oppenheimer's technical strategist Ari Wald told CNBC Monday. But taking a deeper dive into the sell-off shows that the technology sector relative to the S&P 500 index retraced 38 points of its gains since December and this move should be of no concern. Specifically, the technology index's 200-day moving average continued to trend higher during the brief period of underperformance, Wald continued. As such, this this could be viewed as a "near-term opportunity to buy long-term strength."

500 Million More Reasons To Be Bullish On Tech

Related Link: This Warranty Startup Wants To Compete With 'Greedy' Retailers Keep Calm And Carry On? Tech Sell-Off Is A 'Healthy Correction'

"This weakness we're seeing is all within the trend," Wald added. "The trend is still higher. That's the important point."

Wald now views the technology sector as a "tactical idea" and a "secular story" and sees no reason to be concerned over the long term.

The options market is also supportive of tech's rebound, Dennis Davitt of Harvest Volatility Management also explained to CNBC.

Investors have been very active in buying call options in the Nasdaq ETF, the PowerShares QQQ Trust, Series 1 (ETF) QQQ. Specifically, the $145 strike calls have seen an uptick in volume, which yields a profit if the Nasdaq 100 index moves 11 percent higher.

In fact, an investor or group of investors bought around $500 million worth of call options, Davitt added.

"So, we're seeing people gaining exposure back into the tech sector using options on the broader base tech indexes," he said.