Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

NASDAQ-S&P 500 Ratio Undergoing Important Test

ByChris Kimble
Published 05/14/2021, 11:10 AM
Updated 07/09/2023, 06:31 AM

NASDAQ Composite-S&P 500 Ratio Monthly Chart.

Tech stocks have been on shaking ground over the past several weeks and few months.

And this shows up clearly in today’s ratio chart, pitting the NASDAQ Composite versus the S&P 500 Index on a “monthly” basis.

This long-term chart really gets at the heart of the NASDAQ’s performance versus the broader market. And because it’s a “monthly” chart, it really highlights the macro trend.

As you can see, the NASDAQ’s out-performance propelled it to touch its 2000 highs before pulling back. The recent underperformance has seen the NASDAQ slide to a key trend-line support area.

Bulls want this area to hold and spur another rally attempt higher. Until broken, this is a strong support level – and odds favor that it will hold.

But if this price support breaks down, then look for tech stocks to underperform as the ratio heads to the lower end of its up-trend channel. Stay tuned.

 

Latest comments

it is perfect
I was looking at something similar and I agree its at or certainly will be at that critical support or resistancd depending on your chart make up or orientation. I have already taken the position that tech will hold relatively but we shall see. Direct consumer support will all but have disappered by late summer and Biden seems to be desperate for gop support so expecting him to back down on major business tax hike . The big money always seems to escape relatively unscathed. Consumer stock run coming to an end .
I don’t know what the odds are but it’s not gonna hold
Hei
what are the odds from your analysis
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.