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Tech Stocks Need To Reverse Under-Performance Trend

Published 10/26/2022, 02:42 AM
Updated 07/09/2023, 06:31 AM

Several times we have highlighted the under-performance of tech stocks.

Nasdaq Composite/SPX Ratio Chart

However, now more than ever do tech stocks need to reverse their misfortune.

Today, we look at a long-term “monthly” chart of the ratio of the Nasdaq Composite to the S&P 500 Index.

As you can see, the trend has been higher for well over a decade. But this out-performance turned into significant under-performance over the past 18 months… and the ratio is now attempting to break below its 13-year rising trend line. In fact, October is currently trading below it!

This will be an important monthly close for tech bulls. Can the Nasdaq/S&P 500 ratio hold on to critical support? Stay tuned!

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