$SPXEW Leads, $NDX Consolidates: Bullish Rotation Intact

Callum_Thomas
02-26

1.SPXEW vs $NASDAQ 100(NDX)$

The equal-weighted S&P500 $S&P 500(.SPX)$ is pushing higher, and the Nasdaq 100 is stuck in consolidation mode (as tech is in a bit of a stalemate; awaiting cue on next steps).

Basically, the bullish rotation theme remains in play [i.e. the rest of the market is finally having its day in the sun as tech takes a back seat].

2.Global Tech vs US Tech

Similarly, the chart below shows how rest-of-world tech continues to push higher (new highs last week), while US tech pretty much looks to be in a downtrend at this point.

The divergence here and above still has a bullish/constructive hue to it in that you have the rest of the market + global looking good, doing well in absolute terms (for good reason) —and taking up the slack from softer tech performance.

Again, it looks like bullish rotation, yet I think it’s important to remain vigilant on tech as a larger breakdown there would test my optimistic bullish rotation interpretation…

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