BIG TECH STOCKS ARE MAKING A COMEBACK -- QQQ IS SHOWING NEW LEADERSHIP

BIT TECHS ARE DOING BETTER... The largest technology stocks have been trading sideways over the past few months while the rest of the market has been rallying.   The last two days, however, are showing money starting to flow back into some of the biggest tech stocks.   Chart 1 shows Apple up sharply today and nearing a test of its recent highs.   Chart 2 shows Amazon.com testing its late December high.  An upside breakout may be imminent.   Chart 3 shows Facebook bouncing off its 200-day average and challenging it 50-day line.   Chart 4 shows Microsoft testing its December high.  Chart 5 shows Alphabet rising to a new record.   This week's stronger performance by tech and communications stocks is also giving a boost to the Nasdaq market on an absolute and relative basis.

Chart 1
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QQQ PLAYING CATCHUP...The daily bars in Chart 6 shows the Invesco QQQ Trust rising into record territory this week.    It's also doing better on a relative basis.   The upper box plots a relative strength ratio of the QQQ divided by the S&P 500.   After peaking four months ago, the ratio has trended sideways.   That was due mainly to a rotation out of large tech growth stocks into more value-oriented cyclical stocks.   The upper box shows the ratio breaking out to the highest level since early September.   That reflects money starting to flow back in several of the largest tech stocks.

Chart 6
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