What’s Next for the Nasdaq100?
April 13, 2021
Knox Ridley
Portfolio Manager
Many investors are worried right now about another bear market or major correction. In this webinar, we look at promising broad market signals which support a potential leg higher, plus levels to watch within the NASDAQ100 and a potential path forward.
What we’re seeing right now is broad based strength across major global indexes. Most major indexes are at all time highs, including the Nadsaq100, Dow Jones Transportation Index, Dow Jones Industrial Index, and the S&P 500. The Russell 2000 is only 6% from the all time high. EFA is at a multi-decade high, while emerging markets seem to be setting up for another breakout.
We’re seeing a global breakout with wide breadth, which to us is a bullish indicator of a healthy market. This market reminds me of 2016/2017 based on the increase in negative sentiment while global markets appear to be priming for a combined move higher.
It’s important to focus on the Nadsaq100, which has led the market higher since 2009, including out of the bear market in March 2020. Tech accounts for 24% of the S&P 500. We will need to see this index and sector continue its strength for final confirmation of the next leg forward.
We see two potential paths forward, both of which are setting up for larger breakout moves. To find out what levels we’re watching, please see the video below.
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