Is It Too Much To Ask?

The Nasdaq has taken a well-deserved breather from the late November highs last year just above the very round 16000 figure and has traded into “bear market” territory. Even with the tech-heavy benchmark down 20% from those highs of course we know plenty of other names are down triple that percentage. A reset for the composite is probably the best thing that could have happened after the XLK, the technology ETF, was the best performing major S&P sector in 2019 and 2020 advancing 50 and 44% respectively. 2021 was not too shabby either up 34%, making it the fourth-best of the 11 major sectors. So far in 2022, it is just the 10th best of 11 down nearly 16%. It is not the standing it is accustomed to, and perhaps it needs more time to rest. But the Nasdaq did CLOSE above the very round 13000 number and in the upper half of its daily range. The doji candle from Tuesday cut well into the bullish piercing line from 2/24 and give the index the benefit of the doubt as long as it stays above 12800 on a CLOSING basis.

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