Chart of the Day - Tuesday, November 26, 2024

🏆 Today's Chart of the Day was shared by Nautilus Research (@NautilusCap) 
 

• The Technology Sector led in the first half of 2024. However, it's been one of the weakest sectors in the second half, lagging the S&P 500 by more than -7% since the end of June. 
   
• Nautilus points out that the Tech Sector's relative performance has closely tracked its Four-Year Presidential Cycle. Like clockwork, Tech peaked relative to the S&P 500 in June of this year. 
   
• Tech typically underperforms in the second half of Election years. While it typically bottoms in April of the post-election year (2025), the relative trend remains messy until October of the Midterm year (2026). 
   

The Takeaway: If the Tech sector continues to track its Presidential Cycle, it could remain relatively messy until October 2026.