The QQQ ETF Points to What’s Next for Stocks… And You Probably Won’t Like the Answer

Group 1 - The Invesco Nasdaq 100 ETF (QQQ) experienced a rally driven by Nvidia's strong quarterly results, highlighting its significance to market bulls [1][2] - The performance of QQQ has diverged significantly from the average S&P 500 stocks, with QQQ outperforming the Invesco S&P 500 Equal Weight ETF (RSP) by a substantial margin [2][3] - Over the past 12 months, QQQ has outperformed RSP by nearly 20%, and over the past 5 years, QQQ has increased by 100% while RSP has gained less than half of that [4] Group 2 - The disparity in performance between QQQ and RSP indicates that the largest stocks in the S&P 500 have come to dominate the market, leading to a long slump for RSP [3][4] - There are two potential scenarios for RSP's comeback: outperforming QQQ in an up market or being "less bad" than QQQ in a down market, neither of which has occurred recently [5]