As we have noted since long before the COVID-19 crisis, Tech has been a firm leader. So too have general growth stocks been consistently leading so called* value stocks. Here is a monthly chart from NFTRH’s Market Internals segment telling a story of not only a long-term trend but even more importantly, an accelerated trend preceding and even more so during the 2020 crisis.
The theme expands to a monthly chart view of NDX vs. SPX. It’s a robo uptrend of 18 years and it barely made a blip during Armageddon ’08.
Here is the daily chart of NDX. Is it preparing to do the unthinkable (just 1.5 months ago) and fill the gap? It looks poised for it at least.
* “So called” in my opinion because they tend to be laden with debt, probably very related to the reason they are traditionally associated with ‘value’, AKA slow growing, dividend paying (on that debt).
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