Is Tech Stocks Fall From Leadership A Short- Or Long-Term Deal?

S&P 500-NASDAQ Composite Ratio Chart.

S&P 500-NASDAQ Composite Ratio Chart.

Over the past several months, growth stocks have begun to fall behind value stocks. And this theme can easily be seen in the growth-oriented .

Technology stocks have been a market leader for much of the past two decades. But this trend/theme appears to be coming to an inflection point.

And this backdrop brings us to today’s chart, which highlights the S&P 500 Index versus the Nasdaq Composite via performance ratio. And with tech being a long-term leader, you can see that the broad has been lagging the Nasdaq over the past several years – see downward trend marked by (1).

But, as we mentioned above, tech stocks have been lagging over the past several months. And we can see how the broad S&P 500 Index has been out-performing the tech-dominated Nasdaq Composite of late. In fact, it appears to have formed an inverse head-and-shoulders pattern while rallying up to the trend resistance line at (1).

Looks like a big test for tech is coming up. If resistance holds, it’s great for tech. If not, rut ruh! Stay tuned.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Comments are closed, but trackbacks and pingbacks are open.