Chart of the Day - Wednesday, October 26th, 2022

Today’s Chart of the Day was shared by John Roque (@daChartLife). It's a ratio chart of the Nasdaq vs. the S&P 500 over the past four decades. We highlighted this chart at the beginning of the year, pointing out that the Nasdaq was forming a major top relative to the S&P 500. While the broader market has rebounded recently, this ratio continues to flirt with new lows. In a comment to The Chart Report, John said, "This ratio is down 18.5% over the past 21 months, in favor of the S&P 500. Prior tops fell further and lasted much longer than the current decline. Still looking for it to work lower from here."