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Tech has been a market leader for many a year, as it has been much stronger than the broad market and small caps. Could this trend be about to change? Whether it changes or not, Tech does face a key Power of the Pattern test, at this time!
Below looks at the Nasdaq 100 index over the past four years-
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The trend remains up in tech. The rally off the 2016 lows, now has the NDX testing the top of this rising channel at (1). A 2-year rising support test is in play this week at (2), creating a tight jam between resistance and support. Tech bulls would prefer this rising support line holds!
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Tech has been stronger than small caps for years. Potential the ratio could be creating a double top at (1). 7-month rising support test in play at (2). If the ratio would break support, it would reflect that small caps are reflecting strength over tech.
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