This selloff off the most recent top is not broad based. The big tech darlings are leading the decline.
The QQQ and the SPY are equal for the most part except that the QQQ has a higher weighting of tech while the SPY has oil and gas, banks, and various other non tech sectors.
The strongest sector last week was probably oil and gas. Look at XLE, USO, DBC, etc. All were up.
The last time there was a rollover in the QQQ vs SPY ratio was after the August 2022 top. It didn't go back up until after the bottom in December. The one prior to that was the rollover at the end of 2021.
The entire market is not melting down. The oil and gas sector is bullish. The VIX is tame. Treasury yields are rising. Crypto just tanked. Big tech retail favorites are getting hit. This is more like the beginning of 2022. Not the beginning of 2023. GDP estimates are freaking 5.8% for the 3rd quarter. Headline CPI has bottomed. Energy CPI is going back up.
It seems many Youtubers are still bullish the tech favorites like TSLA and PLTR and buying the dip. Anyone buying up the hated commodity sector?
I think there is a probability that we see a repeat of the market similar to most of 2022. Big tech and crypto weakness while banks and energy do well.
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