All day, we were seeing and saying how much the NASDAQ/SOX/TECH was outperforming the rest of the market. We saw it on Friday until markets tanked into the close but even Friday showed relative strength. Today it was that much more. With the DOW still down 582 points today, the NASDAQ was down a measly 18 points and the NASDAQ 100 was up. Simply put, when these areas start leading, it is good news for the market. For sure, it is only a couple of days but its a start…and the relative strength was not just relatively small but relatively large.
So we suggest we may get a bump soon led by these areas. At the very least, we do not think this relative strength just goes away. Price is way overdue for some relief. Just keep in mind this is near term stuff and keep in mind we remain in the most news-driven environment we have ever been in.