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Representing the "technology giants" sector, the NASDAQ 100 Index has underperformed the Russell 2000 Index for 11 out of the past 12 days. Currently, the ratio of Nasdaq/Russell 2000 has fallen back to the level at the beginning of the year, erasing all gains for the year.

After breaking below the uptrend line, what will be the next step? Will it be a rotation between large-cap and small-cap stocks in the US stock market, leading to a further decline in the Nasdaq/Russell 2000 ratio? Or will both decline together under the shadow of a US recession?

Source: Wallstreetcn The copyright of this article belongs to the original author/organization.

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