For the past two decades, the S&P 500 Index has underperformed the Nasdaq as tech stocks have been all the rage.

Growth and innovation has transformed our economy and kept those companies (and stocks) firmly in a position of leadership.

But is tech leadership about to be up-ended?

Today’s chart looks at the long-term “monthly” relationship (ratio) of the S&P 500 to the Nasdaq. As you can see, the S&P 500 Index has underperformed the Nasdaq for nearly 2 decades!

BUT the broad large cap index has been out-performing the Nasdaq for several months and the ratio is breakout out of its downtrend channel at (1). This comes after a potential double-bottom formation. Are large caps set to outperform tech stocks in months/years ahead? 

(Click on image to enlarge)

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