Filed under: Google (GOOG), Apple Inc (AAPL), Indices, Market matters, Technical Analysis, S and P 500

In recent weeks, the Nasdaq-100 Index (NDX) has lost considerable ground on an absolute basis and relative to the S&P 500 index.

Interestingly, if you graph the relationship between the large cap, technology-heavy bellwether and the broad market index going back to 2002, the pattern of recent months looks vaguely familiar.

In fact, it seems to be a mirror image of the false breakdown that occurred in the summer of 2006. After that particular “head fake,” the ratio staged a major upside reversal, and technology shares outpaced the S&P 500 index by a wide margin over the course of the following 12 months.

Continue reading Does another false breakout portend more technology weakness?

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This entry was posted on Saturday, January 26th, 2008 at 7:12 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.