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Tech Indicator Peaking At 2000 Highs?

ByChris Kimble
Published 04/20/2021, 12:17 PM
Updated 07/09/2023, 06:31 AM

Long-Term NASDAQ Composite-S&P 500 Ratio Chart.

For the past 19 years, the NASDAQ Composite has been stronger than the S&P 500.

Is this trend about to change?

This chart looks at the Nasdaq Composite Index/S&P 500 ratio since 1997. It peaked in 2000 and fell like a rock, as tech stocks fell much harder than the broad market after the Dot.com highs.

Since the ratio double-bottomed in 2002-2003, it has created higher lows and higher highs, reflecting strength from tech.

Some weakness in the ratio is taking place after it hit the top of its long-term rising channel as well as the 2000 highs a couple of months ago.

The trend remains up, which is bullish for tech.

If the ratio breaks support at (1), it would send a negative message from the tech sector! Keep a close eye on what this ratio does over the next couple of months, as the markets are about to enter the “Sell In May and go away” time frame.

Latest comments

good one, the market does seem to be toppy, please keep us up to date, thanks
Why pose a question in the title and then not answer it in the commentary?
Finra Margin Statistics is out. ($822,551,000,000) A whopping 👁️ popping amount. guess what it all has to be paid back signaling a market top
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