Thursday, January,14 2021 GLOBAL MARKETS STRATEGY DAILY UPDATE
Chart of the Day
Nasdaq 100 – Staying the Course
- The Nasdaq 100 continues to trade higher within the confines of an upward channel similar to the S&P 500. From my view, to turn things negative we would need to see a breakdown out of the channel and below the prior high in September at 12439, along with a breaking of the March trend-line that is in confluence with that previous record high. Otherwise, stay the course. A large chunk of the NDX’s weighting is concentrated in just a few stocks, FANMAG (FB, AMZN, NFLX, MSFT, AAPL, GOOG), and these stocks have generally been moving sideways the past few months. If this group can go on the move again, it is likely to cause an outside move (up or down) to develop in the NDX. Right now, the digestion period is viewed as consolidation within the uptrend but could turn out to be a distribution top. In general, it is a good idea to keep an eye on them for further indications given their ~40% weighting in the NDX.