Will Tech Stocks Turn Bearish Here?

Technology stocks have continue to lead the broader market higher in 2024, posting new high after new high.

At the same time, this is the very reason we watch the Nasdaq related indices very closely with each pause in the market. When leadership is strong, the market tends to remain strong. BUT, when leadership starts to falter, the chances of a stock market correction go up.

So today we visit one of my favorite tech index ETFs (and broad market indicators), the Equal Weight Nasdaq 100 ETF (QQEW).

As you can see, unlike the Nasdaq 100 ETF (QQQ), the QQEW has yet to breakout. In fact, it may be forming a double top at major price resistance. And to make matters more concerning, we have a falling RSI which is creating a bearish divergence (similar to late 2021).

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Might be important what happens with Equal Weighted Tech here! Stay tuned!!

$QQEW Equal Weight Nasdaq 100 Chart

nasdaq 100 equal weight index bearish double top pattern chart

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The author may have a position in mentioned securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.