The Nasdaq fell harder than the Dow and S&P 500 in Monday’s downdraft, but the Nasdaq’s relative strength recently augurs well for the stock rally that kicked off in March 2009, a technical analyst says.

“The ratio of the PowerShares QQQ (NasdaqGM: QQQ) versus the SPDR S&P 500 ETF (NYSEArca: SPY) remains in a primary uptrend,” said Tarquin Coe at Investors Intelligence in a note to subscribers Monday.

He said the relative performance of the Nasdaq-100 Index against the S&P 500 is a good barometer of the strength of the ongoing bull market.

“The QQQ led the market out of the nadir in early 2009 and it will eventually lead to the downside when the time comes,” Coe said. “That time is not now.”

Referring to a chart of the QQQ/SPY ratio, the analyst said the recent correction hasn’t pushed it below its 200-day exponential moving average.

“That is a clue to remain long and not bail out. Brief corrections are inevitable in all bull markets,” he wrote. “This ratio adds confidence and we remain fully invested.”

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.