Tech Indicator Peaking Again At Dot.com Highs? Joe Friday Says Watch This Index

Technology is at the heart of our economy… the same way that industrials were 100 years ago.

And that leadership has been present in the stock market for the past two decades. Today’s chart illustrates this… as well as a potential “pause” in that leadership vacuum.

Below is a long-term “monthly” ratio chart of the Nasdaq Composite versus the S&P 500 Index. Here you can see how technology stocks have led the broader market for the past 19 years!

BUT the performance ratio recently tested its 2000 highs last month and turned lower.

Here Joe Friday asks, “potential double top at 2000 highs?”

Perhaps… at a minimum, this is strong resistance that is producing a bearish reaction for tech stocks.

Joe Friday Just The Facts Ma’am, Should the index breakdown from this rising wedge pattern at (1) at the end of the month, it would be sending a negative message to the tech sector. Stay tuned!

(Click on image to enlarge)

Disclosure: Sign up for Chris's Kimble Charting Solutions' email alerts--click here.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.