Chart Of The Day: Dandruff Time For The Nasdaq?
With the world and his mum applauding day-after-day as the nominal price of the major equity indices push to either i) all-time highs, or ii) post-crisis highs; and any and every measure of 'fear' (e.g. volatility and credit spreads) is repressed to limit-zero; there is an annoying glitch in the new market-based reality that has become our barometer of how we feel. Since the 2009 lows, every new market high has been confirmed by the Nasdaq - until now that is - as the divergence between the tech-dominated 'new normal' index and the rampacious Dow Transports or Industrials (dominated by one or two names each and every day) has grown significantly. The worrying chart below, perhaps suggests that the broad Nasdaq index is about to begin the down leg of a major head-and-shoulders pattern - helped by none other than 'most-held' Apple. Are non-Nasdaq indices being driven by the hedge unwinds against this mega-holding?
(h/t Brad Wishak at NewEdge)
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