NASDAQ's weakening breadth
Speculators were eager to snap up a select few hot tech stocks just a few days ago. Now that the market is reversing downwards, speculators are getting out of individual stocks and jumping into QQQ. Our QQQ Liquidity Premium indicator is at 0.53:
When this happened in the past, the NASDAQ's future returns over the next 2 months were mixed. But on a longer term basis, this usually led to more gains over the next 6-12 months:
What goes up fastest also comes down fastest. Almost 36% of NASDAQ 100 members have triggered a MACD sell signal in the past 10 days:
When this happened in the past, the NASDAQ's forward returns were consistently more bullish than random:
Meanwhile, more than a third of NASDAQ members fell below their lower Bollinger Band:
Once again, this led to more bullish than random returns for the NASDAQ 100 over the next 1-3 months: