I've been expecting the techs to underperform the broad market and especially big caps well before the markets start to roll over. And that's what we have had.
On the chart bellow we see the Nasdaq Composite to Dow Industrial Average ratio. It reflects the willingness of investors to buy riskier (more expensive on the relative basis) growth stocks. This ratio has put a top at the end of September and since, it has declined in the clear 5 waves pattern, meaning, from the Elliott waves point of view, the trend has changed.
So the rally in "risk appetite" has lasted a bit less than 10 months, and hence it confirms the coming reversal in the major averages (SPX, DOW) which will mark at the same time the beginning of the 3d wave down for the Nasdaq to Dow ratio.
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