Talk about relative strength. Coming into this week, we noted how the NDX was leading the way
higher. This was a pretty obvious statement since the NDX is the only index that has moved above
April’s highs. Things were taken to a whole new level on Friday. With the Dow and SPX closing
marginally lower and the Nasdaq gaining a single percentage point, the NDX blew up. It gained 2.5%
and continued to forge its way to new multi-year highs, despite lackluster sessions everywhere else.
Obviously, this strength on the NDX is very impressive, and it may be telling us that the indices have
no intention of giving us a larger mid-term pullback. However, there’s no good reason to come to that
conclusion tonight. All other indices remain below April’s highs and sport clear three-wave patterns to
the upside. Despite the exuberant action on the NDX, the best fit is still a larger mid-term decline.
higher. This was a pretty obvious statement since the NDX is the only index that has moved above
April’s highs. Things were taken to a whole new level on Friday. With the Dow and SPX closing
marginally lower and the Nasdaq gaining a single percentage point, the NDX blew up. It gained 2.5%
and continued to forge its way to new multi-year highs, despite lackluster sessions everywhere else.
Obviously, this strength on the NDX is very impressive, and it may be telling us that the indices have
no intention of giving us a larger mid-term pullback. However, there’s no good reason to come to that
conclusion tonight. All other indices remain below April’s highs and sport clear three-wave patterns to
the upside. Despite the exuberant action on the NDX, the best fit is still a larger mid-term decline.
