Wall Avenue has continued to rattle off some new file highs in October, however the absence of 1 main index from the listing is beginning to turn into evident, in keeping with Raymond James. Quantitative and technical strategist Javed Mirza identified in a observe to purchasers that the Nasdaq 100 has not set a file excessive since July. The relative battle of that tech-heavy index is presumably an indication that the broader bull market is on the verge of getting into into a brand new section — and getting near a peak, in keeping with Mirza. “The Nasdaq 100 is an effective proxy for the extra ‘growthy’ areas of the market and this detrimental divergence means that Portfolio Managers have begun to shift away from the extra growth-oriented areas of the market, in step with a shift into the late phases of the present 4-12 months Cycle. The Nasdaq 100 has did not reclaim the highs it set in July, regardless of the S & P 500 , TSX Composite, and Dow Jones Industrials all scoring new all-time value highs,” Mirza wrote. .NDX 6M mountain The Nasdaq 100 has not set a brand new file excessive since July. On Monday, the Nasdaq 100 was buying and selling about 2% under its file shut. Technical indicators counsel that it will not shut that hole any time quickly. “The Nasdaq 100 simply triggered a brand new short-term ‘mechanical promote’ sign, diverging from the opposite North American fairness indices,” Mirza stated. The Nasdaq 100’s droop will not be the one issue pointing to towards a brand new section for the bull market. Different notable knowledge factors embody the Cboe Volatility Index (VIX) making greater lows and the Canadian TSX Composite outperforming the S & P 500, whereas WTI crude pushing above $94 per barrel could be a fourth level, Mirza wrote. To make sure, even the late stage phases of a bull market can final for fairly some time. Mirza does say that the “path of least resistance” continues to be greater for shares total heading into 2025.
