We have almost reached the old low of September 2021 again which has proved several time as a support or resistance zone. I expect it to hold another time. But mind the double top. Perhaps it is the last test of the upside.
Value is currently oversold within a Long-Term uptrend relative to Growth. Would not be surprised to see the recent weakness from Value/strength from Growth abate here.
Here's a monthly chart of $IWD /$IWF (black line, rhs) and the US 10yr yield (orange, lhs) going back 15 years or so. The bottom panel here is the rolling 36month (aka 3yr) correlation between these two. As you can see, the rolling correlation currently sits at 0.88. While not quite as high as a few months ago, it seems...
After value stocks were stronger last weeks, also growth stocks seems only to tested the Moving Average, as several times before...
Now growth stocks may be back in focus to be great opportunities for the next month
If we look at value vs growth you can see some striking similarities to the tech bubble back in 2000 . It may be different this time because of stimulus, but what if it isn't?
The Russell 1000 growth/value ratio has formed a head and shoulders pattern, indicating growth stocks may be in trouble and value may be on its way back
Arca
