NasTech Outperforming
We just wanted to relay a few charts here in regards to the recent bout of Nasdaq outperformance lately, especially against the other indexes that we follow. The current Nasdaq futures chart has an interesting set up on the 4hr. This recent pause here started in Asia and continued on thru Europe which was promptly defended by stimulus induced buyers on the US open.
Will this just be a brief pause, or will we see some profit taking from some very lofty levels here?
The 50eMA value zone is some 300 points lower and won’t catch up here for another week if we can consolidate, but a deeper dive profit taking move may bring us there quicker. However don’t count on it as buyers seem to be opting for the protection tech offers over the broader indexes. Here is a Magnelibra proprietary spread chart vs the SP500 where the NQ has clearly reasserted its power:
