It’s the flow of money from one sector to another that sustains the broader uptrend, often longer than most expect.
Q2 was all about tech—growth dominated. And while I still see legs for Growth, especially in some of the more speculative corners, it doesn’t mean this is a one-way street.
That’s why I think value-oriented areas could start getting some attention.
Here you have the Large-cap Growth vs Value ratio back at a critical level of interest.
This zone has historically acted as a brick wall, making it a very logical point for a potential shift in this relationship, at least for the the short term.
As long as we stay above 2.21, Growth remains the place to be. But a break below 2.21 could open the door for money to rotate into more value-oriented areas of the market.
This is something worth keeping on our radar over the next couple of weeks.
