Nasdaq Composite and S&P 500 Long-Term Monthly Ratio.
Technology is at the heart of our economy – the same way that industrials were 100 years ago.
And that leadership has been present in the stock market for the past two decades. Today’s chart illustrates this, as well as a potential “pause” in that leadership vacuum.
Here is a long-term “monthly” ratio chart of the {{14958|NASDAQ Composite}} versus the . Here you can see how technology stocks have led the broader market for the past 19 years.
ButT the performance ratio recently tested its 2000 highs last month and turned lower.
Could there be a potential double top at 2000 highs?
Perhaps. At a minimum this is strong resistance that is producing a bearish reaction for tech stocks.
Should the index breakdown from this rising wedge pattern at (1) at the end of the month, it would be sending a negative message to the tech sector. Stay tuned.
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