Important Tech Indicator Looks To Be Double Topping
Chris Kimble | Sep 04, 2020 02:40PM ET
Is an important tech stock indicator double topping and about to send the first bearish message in months?
It is possible.
This chart looks at the Nasdaq 100-S&P ratio on a weekly basis. The trend has been strongly higher for months, reflecting tech’s impressive strength when compared to the S&P 500.
It is possible over the past nine weeks that the ratio has been creating a double top at (1), while momentum has been reflecting that a bearish divergence, creating lower highs at (2).
A break of support at (3), would send a negative message to tech stocks and the S&P 500.
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