The Nasdaq Out-Performance May be Slowing
- Posted by Greg Harmon
- on August 30th, 2013
A couple of weeks ago the Nasdaq took over leadership for certain among the indexes. I made the case in Is There A New Index Leader? at the time. Running the clock forward a couple of weeks sees that the this out-performance may be coming to an end. If you look at the ratio chart of the Nasdaq to the Dow Jones Industrial Average, using there ETF doppelgangers $QQQ and $DIA, you can see that the ratio leveled out this week. The Relative Strength Index (RSI) of the ratio has been overbought and worked that off, so it may be ready for another leg higher. But the Moving Average
Convergence Divergence indicator (MACD) is level on the signal line at a very high level with a histogram that is pulling back. This suggest more pullback is in the cards. Not a sign of panic yet, but if you have been playing the Nasdaq against the Dow it may be time to take some profits. Maybe buy some burgers, dogs and beer and celebrate this weekend.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity to join or upgrade! Sign up here.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through August 2013 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
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)
- SPY Trends and Influencers May 2, 2015
- Macro Week in Review/Preview May 1, 2015
- Premium Earnings 5-1-15
- The S&P 500: From Hero to Zero in 4 Days
- Oil is Gushing!
- Premium Earnings 4-30-15
- Is Inflation Poised to Rise?
- The Sun is Out – Buy Some Solars
- Premium Earnings 4-29-15
- What is holding back the S&P 500