For most of the past decade, high-cap tech stocks have been the leaders of the bull market. Investors bought stocks in companies such as Apple, Amazon, Alphabet, Netflix, Microsoft, Tesla and many more.
But over the past 2 months, these large-cap companies have come under pressure, especially over the past week, hello Tesla.
Over the past year, the QQQ / QQEW ratio has formed a head and shoulders pattern, a breakout of the support level would be a bearish signal in tech companies. And then an even bigger shift to raw materials companies will begin.