Nasdaq Still Grooving?
Technology seems to have little competition this year after a dismal 2022. The tech-heavy Nasdaq seems to become envigorated after recording negative annual returns and true to form it is coming back with a vengeance this year. A very healthy 30% return so far in 2023, some may say frothy, and a nice run into the end of Q2 makes sense (we know markets tend to act well before holiday-shortened weeks). Will it correct at some point in the second half? Traditionally when markets act this powerfully in the first half, it is not uncommon to witness at least 5% corrections before the rally resumes to the upside. But waiting for that can have one go stir-crazy. Pay attention to PRICE action. That is how we are paid and what is paramount. The dark cloud cover candle on 6/16 started a bull flag and a break BELOW that would be a defensive sign and signal to raise some cash. On the chart below I have overlapped the NDXE, equal weight Nasdaq, to show many names are now helping with the lift higher.