This is the big one

Posted by

It’s been said that until an index breaks above a pre-established high, it remains in a secular bear market and is guilty until proven innocent.

The S&P 500 finally broke above its prior peaks from 2000 and 2007 back in 2013 but the Nasdaq had a long way to go to get back to the March 2000 highs. And think about how long ago they were set! If you’re anything like me, you were probably listening to a lot of Korn in those days. And maybe even some Staind. Okay, we won’t go there.

Those bubble-era highs above 5,000 for the Nazz seemed so far away just a few years back – but now they’re in sight.

The Russell 2000, the Dow Jones Industrial and Transportation Averages, the MidCap 400 and the S&P 500 have all made new record highs in the current era but the Nasdaq is the Big One.

Stephen Suttmeier, Chief Technical Strategist at Bank of America Merrill Lynch, points out that this event is not a far cry from happening – and maybe soon. It’s on a lot of technicians’ minds right now…

The NASDAQ has consolidated since late November. The pattern of higher lows from mid December through early February combined with horizontal highs sets up a bullish ascending triangle. A decisive break above 4815 would confirm this pattern and favor a rally to 5085. The rising channel from late 2012 counts back to the March 2000 high of 5132.52 by late April.

Screen Shot 2015-02-12 at 4.10.32 PM

 

Source:

NASDAQ Comp set up to test March 2000 high
Bank of America Merrill Lynch – February 12th 2015

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Is NASDAQ 5000 Inevitable? - New Trader U - commented on Mar 01

    […] In late 2000, as the Internet bubble continued to melt from it’s historic 5000 level, I was learning for the first time that markets don’t always rally and bail you out on the long side. Sometimes, pullbacks turn into corrections, bear markets evolve into meltdowns, and bubbles pop. I suffered a large drawdown in 2000 and going into 2001, I began to believe that one day the NASDAQ would return to 5,000, as Internet companies learned to make money. I thought that the inflationary pressure on the dollar, and the ability of corporations to adapt, evolve, or die would bring NASDAQ back. These time valuations are not based on eyeballs, hopes, or views. Today, many companies make money, not just Microsoft, Intel, and Cisco. AAPL, Google, Ebay, Amazon, and Facebook are all survivors. However the target is not really NASDAQ 5000, it’s the NASDAQ all-time high of 5,132.52. That’s only 3.4% from 4963, and there is a good chance that we see this level in 2015. This is the big one […]

  2. PI News Wire commented on Sep 22

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  3. Bitcoin Evolution Review commented on Sep 23

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  4. bitcoin era review 2020 commented on Sep 29

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  5. Bitcoin Era Review 2020 commented on Oct 01

    … [Trackback]

    […] There you can find 92356 more Info on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  6. online dating commented on Oct 14

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  7. Electricity Rates commented on Oct 15

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  8. fun88 commented on Oct 28

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  9. td canada trust login commented on Nov 15

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  10. Azure DevOps commented on Dec 18

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  11. regression testing commented on Dec 21

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  12. wig commented on Jan 15

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

  13. pokerqq commented on Jan 27

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2015/02/12/this-is-the-big-one/ […]

HowIInvestMyMoney