Steering the ship of the stock market in 2024, technology stocks continue their upward trajectory, breaching skyward with each passing day.
As we navigate these uncharted waters, we set our sights on the Nasdaq-related indices, monitoring their every move for any signs of trouble ahead. The strength of leadership often dictates the market’s course — a robust leadership usually signifies a resilient market, while a wavering leadership hints at imminent correction.
Today, we focus our lens on one of the darlings of the tech index ETFs and a bellwether of the broader market — the Equal Weight ETF (QQEW).
A quick glance reveals a stark contrast to its counterpart, the Invesco QQQ Trust. While the QQQ Trust surges ahead, the First Trust NASDAQ-100 Equal Weighted Index Fund appears to be grappling with a potential double top formation at a critical price barrier. Compounding the concern is the downward trajectory of the Relative Strength Index (RSI), painting a picture reminiscent of the ominous shadows of late 2021.
The fate of Equal Weighted Tech hangs precariously in the balance. The next moves will hold significant implications for the market at large. Buckle up and await the unfolding saga.
