Dow, DJIA, Nasdaq 100, NDX Price Analysis
- Over the past few months the Nasdaq[1] 100 has generally outperformed the Dow Jones Industrial Average[2].
- So far this week, those fortunes have flipped as the Nasdaq is working on its second consecutive down-day while the Dow has, so far, rallied through both sessions.
- Is this observation a sign of a top or is this more of a re-load scenario for the Nasdaq 100 as the laggard Dow continues to be bid?
Don’t Call it a Comeback
It’s been a fairly amazing past two months across US equity markets. After US equity indices lost more than a third of their value in a little over a month, an onslaught of government stimulus programs have helped to not only reverse the trend but to push US stocks right back towards those prior all-time-highs. And with low rates for the foreseeable future combined with a Central Bank that’s very willing to do what’s needed to keep financial markets running smoothly, such as Jerome Powell highlighting that there’s ‘no limit’ to what the Fed can do with the lending programs available – it appears that the fear that had driven into markets so aggressively just a couple of months ago has now faded away.
Nasdaq 100 Daily Chart: Back Towards All-Time-Highs
Chart prepared by James Stanley[3]; Nasdaq 100 on Tradingview[4]
And to be sure, there’s much to be optimistic about. In the, US a number of areas are beginning to reopen in anticipation of the summer. The recent Memorial Day weekend went through without any nasty headline surprises, as we’d become accustomed to over the past couple of months; and there’s even hope for a vaccine sooner rather than later, given
