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

By Chris KimbleStock MarketsMar 15, 2022 12:58PM ET
www.investing.com/analysis/is-tech-stocks-fall-from-leadership-a-short-or-longterm-deal-200620073
Is Tech Stocks Fall From Leadership A Short- Or Long-Term Deal?
By Chris Kimble   |  Mar 15, 2022 12:58PM ET
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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 Nasdaq Composite.

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 S&P 500 index 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.

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

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

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Comments (1)
Shep De
Shep De Mar 15, 2022 10:55PM ET
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Well said.Tech falling, growth waning with inflation and just not new technology, metaverse/VR to propel it forward much more + people tired of watching movies, social media, even, gaming, showing signs waning as not many new must-have technology out, same ole X-box & Playstation.2024 it should pick up, Data Center suffer too, slowness of growth in business why
 
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