Growth vs. Value at a Crossroads

Alfonso Depablos, CMT
March 14, 2024

From the Desk of Alfonso Depablos @Alfcharts

One of the major themes we’re monitoring closely right now is the Growth vs Value relationship.

While Growth has dominated for the past couple of quarters, the technical setup suggests it may be time for value to take the lead.

The chart below shows the ratio testing a critical area of former resistance from above.

If the growth vs value ratio ticks a few points lower we’re looking at a nasty failed breakout in favor of value stocks.

Notice how momentum has been waning lately, illustrated by a bearish divergence in the RSI-14.

The bottom line about this relationship is if the ratio falls back into its prior range, we could see a significant shift away from large-cap growth and into value.

As always, we love to hear from you, so shoot us a note and let us know what you think.

Alfonso

Filed Under: