Looking across the U.S. stock market indices and sectors, one thing is apparent: Growth stocks are getting hit hard.
This week, we wrote about a lagging key growth indicator.
And one of the main spaces within the growth arena is technology stocks. And today’s chart highlights just how poor technology stocks are performing versus the broad market.
Below is a chart 4-pack showing the performance of the Invesco S&P 500 Equal Weight ETF (NYSE:RSP) and the First Trust Nasdaq 100 Equal Weighted Index Fund (NASDAQ:QQEW) on a weekly basis – the top 2 are near-term, while the bottom 2 are longer-term. As you can see on the top charts, both have fallen below their summer weekly closing prices, with the QQEW decline deeper on a percentage basis.
But the more revealing charts come in, the lower panels, where we see that the S&P 500 equal weight RSP is trading well above its trend line, while the Nasdaq 100 equal weight QQEW is breaking below its trend line.
Equal weight tech appears to be sending an important message as it breaks below its summer lows and 13-year rising support. This underperformance could drag the market lower yet. Stay tuned.