“Some are worried of an impending pullback in the rally as they focus on the floundering Russell. But others are noticing that this just might be a rotation from the Russell to a new leader. And that new leader looks to be the Nasdaq,” Harmon wrote. “Quietly it printed a new 13 year closing high on Tuesday as the other index ETFs continued to consolidate.” [Nasdaq ETF Highest Since 2000 After Streak]
The first chart below shows the relative performance of the Nasdaq-100 ETF versus the S&P 500 with the recent leadership of QQQ. The second chart shows how the major U.S. sector ETFs stack up against the S&P 500 this year.
Full disclosure: Tom Lydon’s clients own QQQ, SPY and AAPL.