Courtesy of Chris Kimble.
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When looking at performance over the past 1, 2 and 5-year time frames, the NDX 100 has out performed the S&P 500 and Small Caps (Russell 2000) in each of these time windows. The chart below looks at the performance over the past 5-years.
The top chart reflects an attempt by this strong index to break above monthly closing highs in 2000, represented by line (1) and a resistance line (2), which is tied to the lows in 1990, 2002 and 2008. These lines both meet at price point (3) above.
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The NDX remains the “leader of the pack” from a performance perspective. A “Break Out” at (3) above would be a positive for the Tech sector and could influence other markets U.S. markets in a positive way.
At this time our Shoe Box Indicator, High Yields, Advance/Declines and Discretionary/Staples ratio are sending OK messages about the market in general. With these messages being sent, it increases the odds the NDX can “Break Free” from these resistance lines.
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