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Chart of the Week: Nasdaq 100 Channel

Posted By Barry Ritholtz On March 1, 2004 @ 12:16 pm In Finance,Media | Comments Disabled

Nasdaq remains trapped within a relatively tight range, having held yet again in the pivotal support zone. Note this is the first break below the bottom trendline since the rally began. The market needs to show some resilience here, or suffer the bearish consequences.

Nasdaq 100 Channel
nasdaq_100_channel.bmp
Source: CS First Boston

Failure here would complete a significant top, and could move the market lower. Given recent moves in the Nasdaq/S&P ratio (lower chart), the recent top is likely to stay in place. Expect recent Nasdaq underperformance trends to remain.

Random Items:
Googlemania! [1]
Thirteen Tip-Offs That Earnings May Be Inflated [2]
Greenspan’s wrong on Social Security [3]
Commodities Funds Add Portfolio Diversity and Risk [4]
Confessions of a Welfare Queen [5]
Chew. Spit. Repeat. [6]

Quote of the Day:
“Successful Innovation is not a feat of intellect, but of will.”
-Joseph A. Schumpeter [7]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/03/chart-of-the-week-nasdaq-100-channel/

URLs in this post:

[1] Googlemania!: http://wired.com/wired/archive/12.03/google_pr.html

[2] Thirteen Tip-Offs That Earnings May Be Inflated: http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_%20dorfman&sid=ak2dI6cMySzw

[3] Greenspan’s wrong on Social Security: http://cbs.marketwatch.com/news/story.asp?guid=%7B778883A8%2DC610%2D40FB%2DA936%2D1DE5CA8538D8%7D&siteid=mktw

[4] Commodities Funds Add Portfolio Diversity and Risk: http://www.thestreet.com/mutualfundmonday/mutualfundmondayws/10144755.html

[5] Confessions of a Welfare Queen: http://www.reason.com/0403/fe.js.confessions.shtml

[6] Chew. Spit. Repeat.: http://www.latimes.com/features/printedition/magazine/la-tm-spanked09feb29,1,1899759.story?coll=la-headlines-magazine

[7] Joseph A. Schumpeter: http://www.econlib.org/library/Enc/bios/Schumpeter.html

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