Chart of the Day - Monday, December 16, 2024

🏆 Today's Chart of the Day was shared by Eric Conrads (@conradseric). 
 

• The Nasdaq 100 ($QQQ) is at a record high, gaining +5.6% in December's first 11 trading days. Meanwhile, the Equal-Weight S&P 500 ($RSP), a broader measure of 'the stock market,' has trickled lower by -3.2%.
   
• We're halfway through December, yet $QQQ is on track for its best month vs. $RSP since May 2023, outperforming by +9.1%.  
   
• While these two indices have notably diverged, the S&P 500 has coiled into a potential Bull Flag. Conventional wisdom says narrow leadership is bearish, but Mega-Cap leadership is nothing new. 
   

The Takeaway: In the first half of December, the Nasdaq 100 jumped to all-time highs, while the Equal-Weight S&P 500 steadily dipped lower. Some interpret this narrow leadership as bearish, while others view this as a healthy rotation.