Chart of the Day - Tuesday, March 12, 2024

🏆 Today’s Chart of the Day was shared by Austin Harrison (@meanstoatrend).

• Austin points out that growth vs. value ($IWF/$IWD) is retesting its former highs after breaking out in January. The outcome of this test will give us an idea of which sectors will outperform in the coming months.

• The top growth stocks in $IWF are $MSFT, $AAPL, $NVDA, $AMZN, and $META, while the top value stocks in $IWD are $BRKB, $JPM, $XOM, $JNJ, and $PG.

• A breakdown would imply new leadership from value-oriented sectors (Financials, Industrials, Health Care), while a bounce would imply renewed leadership from the Magnificent 7 and growth-oriented sectors (Tech, Discretionary, Communications).

The takeaway: Growth vs. Value ($IWF/$IWD) is at a key inflection point. It's rebounding so far, suggesting renewed leadership from the Magnificent 7 and growth-oriented sectors. But, a breakdown would imply new leadership from value-oriented sectors.