Connect with us

Hi, what are you looking for?


Money is Rotating Back to Growth

One of my favorite ratios, and it’s a very simple one, is just comparing NASDAQ 100 performance vs. the S&P 500 (QQQ:SPY). History tells us that the more aggressive QQQ performs better on a relative basis during bullish cycles, and the SPY performs better during bearish cycles. But divergences do occur at tops and bottoms as Wall Street repositions ahead of key market reversals. I find it interesting that money has been rotating back to the QQQ, just as this bear market seems to be gaining momentum:

If the S&P 500 continues moving lower and the QQQ:SPY rolls over and prints a new low, then I’d disregard this chart as bullish. If, however, the QQQ:SPY ratio has bottomed, we should at least be considering the possibility that so has the S&P 500.

If you’d like brief, thought-provoking charts like the one above, please SIGN UP for our FREE EB Digest newsletter at There is no credit card required and you may unsubscribe at any time. Also, be sure to subscribe to this Don’t Ignore This Chart blog below by scrolling down and providing your email address and hitting the green subscribe button. That way, as soon as DITC blog articles are published by me or others, they’ll be sent directly to your email.

Happy trading!

Tom Bowley, Chief Market Strategist

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 | All Rights Reserved