When ‘everyone’ is selling we start noticing and focusing. The Nasdaq clearly has been the weakest stock market sector since 3 months now. Yesterday, we noticed something very interesting: after good intra-day selling the Nasdaq ended as the strongest of the 4 broad market indexes. This doesn’t go unnoticed to InvestingHaven’s research team.
In our Momentum Investing update to premium members we said: “Eventually, the Nasdaq will become attractive again, presumably in a few months“.
In today’s update we said: “We might need to revise this because yesterday the Nasdaq was the strongest intra-day of the 4 major indexes.”
Not that we are flashing a buy alert on tech stocks now, it’s too early for this.
However, we closely monitor the chart of the Nasdaq. As seen below, IF (that’s a big IF) the Nasdaq succeeds in respecting current levels we might have a new channel that can potentially become dominant! That’s a lot of conditions, and those are mandatory conditions!
We’ll know in the next few weeks, we’ll be closely watching what’s happening in tech stocks after 3 months of selling… as our focus in our Momentum Investing methodology is on 3 month cycles… for a reason!