Stating the obvious that QQQ (representing growth stocks) is
weaker than SPY (representing all sectors of the market). The sectors which are
working are Utilities, Dividend paying stocks and REITS. These sectors are
represented in SPY and not in QQQ. That is why SPY is doing better than QQQ.
The growth sectors in SPY are pulling it down while the
dividend paying sectors are pushing it up. This indicates that it should remain
in a sideways consolidation pattern, till some event changes that pattern. QQQ
will keep on underperforming SPY, till we get some good growth in the economy.
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