Comparing these 4 major indices, you can see clearly that Nasdaq index is the one with the strongest retracement to date.
We can see the SPX500 , DJIA and Russell are showing signs of fatigue and probably the price action will consolidate for a while here before we see the next action.
If based purely on stock market being a leading indicator of the economy, then we can rationalise that the bull run remains intact. That means the other 3 indices must catch up with Nasdaq.
However, if we think that this is a merely a bear market rally albeit a fierce retracement, then it is a matter of time before the price tumbles down.
Review the 2008 chart and you will see that it has retraced by more than 60% before it tumbles down. We are only halfway there thus far (not saying it must reach 60% before coming down)
Another angle I was thinking many of the tech stocks like Apple, Facebook, Microsoft ,etc can easily have their employees work from home thus fulfilling the social distance measure and still get work done !
The small caps companies forming the Russell 2000 index may not have this luxury as they are more of manufacturing companies. They tend to be from traditional business and not the disruptive fintech type.
In weeks to come, when we look back at this chart, it would be more meaningful.
We can see the SPX500 , DJIA and Russell are showing signs of fatigue and probably the price action will consolidate for a while here before we see the next action.
If based purely on stock market being a leading indicator of the economy, then we can rationalise that the bull run remains intact. That means the other 3 indices must catch up with Nasdaq.
However, if we think that this is a merely a bear market rally albeit a fierce retracement, then it is a matter of time before the price tumbles down.
Review the 2008 chart and you will see that it has retraced by more than 60% before it tumbles down. We are only halfway there thus far (not saying it must reach 60% before coming down)
Another angle I was thinking many of the tech stocks like Apple, Facebook, Microsoft ,etc can easily have their employees work from home thus fulfilling the social distance measure and still get work done !
The small caps companies forming the Russell 2000 index may not have this luxury as they are more of manufacturing companies. They tend to be from traditional business and not the disruptive fintech type.
In weeks to come, when we look back at this chart, it would be more meaningful.
Comment:
Once again ,we can see the candles size is different in all US indices with Nasdaq still registering strong buying. 116.63 will be where it is going to retest again. If it breaks out and go higher ,the other 3 indices will follow.
Comment:
a new record !
Comment:
This chart comparison basically shows the benefit of a longer term investing. Holding just one year into these 4 ETFs yield you more than 100% returns on your capital. What's not too like. ?Just buy and forget , no need to stress nor crack your brains on fundamental analysis, technical chartings, reading the news, etc.
Comment:
Praise God, buying into these 4 index yields good returns.
Comment:
current price level may be a temporary support for it to rebound higher.