Is There A New Index Leader?
- Posted by Greg Harmon
- on August 14th, 2013
It has been pretty clear cut that the Russell 2000 has been leading this market higher since the November 2012 bottom. If you need any evidence take a look at teh performance chart below comparing the returns of the ETF’s of the Nasdaq 100 ($QQQ), Russell 2000 ($IWM) S&P 500 ($SPY) and Dow Jones Industrials ($DIA). Not only has the Russell been leading but the Nasdaq has been bringing up the rear.
But over the last few weeks that appears to be changing. Some are worried of an impending pullback in the rally as they focus ion the floundering Russell. But others are noticing that this just might be a a rotation from the Russell to a new leader. And that new leader looks to be the Nasdaq. Quietly it printed a new 13 year closing high on Tuesday as the other index ETF’s continued to consolidate. But it is the performance chart measuring it against the Russell that is most telling. Over the last 3 weeks the Russell 2000 is nearly flat, up 0.3% while the Nasdaq is up over 2.2%. Yes sir cowboys, there is new sheriff in town.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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