For much of the past decade, large-cap tech stocks have been a real bull market leader. Investors have gobbled up shares of the likes of Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Netflix (NFLX), Microsoft (MSFT) to name a few.

But those large-cap tech names have come under pressure over the past 6 months. And more recently, over the past few weeks.

This is all evident in today’s chart depicting the ratio of the cap weight Nasdaq 100 ETF (QQQ) to the Equal Weight Nasdaq 100 ETF (QQEW).

As you can see, this ratio has been in a rising price channel marked by each (1). But over the past year, the QQQ/QQEW ratio has formed a “Head & Shoulders” topping pattern. The latest price action has the ratio testing a confluence of critical support at (2) – the neckline of the H&S pattern as well its rising trend-line.

A break of support at (2) would be bearish for this market leader and would suggest that large-cap tech stocks will outperform the average tech stock. Stay tuned!

(Click on image to enlarge)