This morning we discussed the recent relative strength of the Nasdaq100 vs S&P500. Meanwhile the Nasdaq has been underperforming the S&P all day today. The leaders in this space turned negative early as my buddy ZorTrades pointed out earlier (see here). $AAPL, $NFLX, $GOOG, $BIDU all down.
Since June, the Tech heavy index has been doing very well compared to the rest of the market. The guys over at Bespoke Investment Group nailed it with their chart of Technology’s Relative Strength compared with the struggling Industrials.
They go on to note that:
“Typically, the Technology sector is strongest during the fourth quarter, but this year the sector appears to have gotten a head start on its seasonally strong part of the year (that is until today at least).”
Sector Relative Strength: Technology Getting an Early Start $XLK $XLI