<\/a>Technical outlook<\/h2>\n\n\n\nWith a rise to over 19,900 points, the Nasdaq 100 again reached several all-time highs last week. However, the movement phase of the upward trend is now very advanced and the RSI is signaling an overbought level.<\/p>\n\n\n\n![\"Nasdaq](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/06\/word-image-51670-1.png\")
<\/figure>\n\n\n\nNasdaq 100 daily chart<\/p>\n\n\n\n
Also worth noting is the high volume on Thursday and Friday, when the index fell briefly. The previous upward movement took place under rising volume, as can be seen from the large green volume bars and the rising SMA 10 above the volume. In the event of a correction, the daily EMA 20 (purple) would be the first short-term price target. The next important support area is located at around 18,900 points.<\/p>\n\n\n\n
As can be seen on the weekly chart, the rise at the beginning of the week and the price decline on Thursday and Friday led to a candlestick reversal signal (gravestone doji).<\/p>\n\n\n\n
![](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/06\/word-image-51670-2.png\")
Nasdaq 100 Wochenchart<\/p>\n\n\n\n
The high volume and the fact that the reversal signal was generated above the upper Bollinger band increase the probability that the momentum will weaken, at least in the short term. However, betting on a correction and trying to trade it is usually not a good idea in an uptrend with such high momentum. The analysis can therefore be interpreted to mean that entering long at the current time would be risky and that it makes sense to wait for a correction before looking for new opportunities to enter on the long side.<\/p>\n\n\n\n
<\/a>Technology stocks lead the rally<\/h2>\n\n\n\nWith a performance of 19.1 % since the beginning of the year, the Nasdaq 100 is the strongest index among the major US share indices. In comparison, the S&P 500 rose 15.2 %. The Dow Jones has only gained 3.8 % in the current year.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/06\/word-image-51670-3.png\")
<\/figure>\n\n\n\nPerformance charts: Nasdaq 100, S&P 500, Dow Jones<\/p>\n\n\n\n
The leading role of the technology sector continues to be one of the most important driving forces behind the current bull market. In particular, the heavyweights in the index are responsible for the strong performance of the Nasdaq 100.<\/p>\n\n\n\n
<\/a>Nvidia, Apple and Microsoft drive index upwards<\/h2>\n\n\n\nThe three companies with the highest market capitalization in the index are Nvidia, Apple and Microsoft. These have a weighting of almost 25 % in the Nasdaq 100. Apple and Nvidia have recently been in a neck-and-neck race for the title of the company with the highest market capitalization. Nvidia is currently slightly ahead and has overtaken Apple.<\/p>\n\n\n\n
The strong performance of these three stocks was therefore largely responsible for the positive development of the Nasdaq 100. It is therefore also a good idea to keep an eye on the performance of these leading stocks<\/p>\n\n\n\n
<\/a>Market breadth somewhat weaker recently<\/h2>\n\n\n\nAs mentioned above, the large companies with the highest market capitalization and index weighting are currently largely responsible for the sharp rise in share prices. It therefore makes sense to also analyze the market breadth in order to see how the broad mass of shares is behaving. In the Advance Decline Line, we have been seeing a divergence from the performance of the equity indices for several weeks now. As far as the Nasdaq 100 is concerned, the Nasdaq 100 Equal Weighted Index Fund (symbol: QQEW) offers the opportunity to examine the performance of the equally weighted index.<\/p>\n\n\n\n
As the following chart shows, the equally weighted Nasdaq 100 is also in an intact upward trend. This means that the majority of stocks in the Nasdaq 100 are in an uptrend. However, unlike the QQQ and the Nasdaq 100 Index, the QQEW has not been able to rise to new highs recently, which is a sign of relative weakness. However, this signal should not be overestimated, as it has a comparatively poor accuracy rate as a forecasting tool for the development of the Nasdaq 100. It can also be seen that the QQEW has performed strongly, at least in the last few days. Looking at the chart, an upward breakout seems more likely than a trend reversal. The highs are stable and the lows are rising, thus literally pushing upwards.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/06\/word-image-51670-4.png\")
<\/figure>\n\n\n\nNasdaq 100 Equal Weighted Index Fund (QQEW)<\/p>\n\n\n\n
Another instrument for measuring market breadth is the number of shares that are above the 200-day line. The Nasdaq 100 currently has 67 % above the SMA 200, the S&P 500 around 70 % and the New York Stock Exchange (NYSE) around 63 %.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/06\/word-image-51670-5.png\")
<\/figure>\n\n\n\nNasdaq 100 - percent shares above SMA 200<\/p>\n\n\n\n
This means that a large proportion of all shares are in an upward trend, which is a positive signal. However, these figures have fallen back a little in recent weeks.<\/p>\n\n\n\n
All in all, the analysis of market breadth confirms the bull market as well as the upward trend in the Nasdaq 100. However, due to the overbought market situation in combination with the somewhat weaker market breadth in the short term, a correction of a few percentage points would not be surprising.<\/p>\n\n\n\n
<\/figure>\n\n\n\nNasdaq 100 daily chart<\/p>\n\n\n\n
Also worth noting is the high volume on Thursday and Friday, when the index fell briefly. The previous upward movement took place under rising volume, as can be seen from the large green volume bars and the rising SMA 10 above the volume. In the event of a correction, the daily EMA 20 (purple) would be the first short-term price target. The next important support area is located at around 18,900 points.<\/p>\n\n\n\n
As can be seen on the weekly chart, the rise at the beginning of the week and the price decline on Thursday and Friday led to a candlestick reversal signal (gravestone doji).<\/p>\n\n\n\n
Nasdaq 100 Wochenchart<\/p>\n\n\n\n
The high volume and the fact that the reversal signal was generated above the upper Bollinger band increase the probability that the momentum will weaken, at least in the short term. However, betting on a correction and trying to trade it is usually not a good idea in an uptrend with such high momentum. The analysis can therefore be interpreted to mean that entering long at the current time would be risky and that it makes sense to wait for a correction before looking for new opportunities to enter on the long side.<\/p>\n\n\n\n
<\/a>Technology stocks lead the rally<\/h2>\n\n\n\nWith a performance of 19.1 % since the beginning of the year, the Nasdaq 100 is the strongest index among the major US share indices. In comparison, the S&P 500 rose 15.2 %. The Dow Jones has only gained 3.8 % in the current year.<\/p>\n\n\n\n<\/figure>\n\n\n\nPerformance charts: Nasdaq 100, S&P 500, Dow Jones<\/p>\n\n\n\n
The leading role of the technology sector continues to be one of the most important driving forces behind the current bull market. In particular, the heavyweights in the index are responsible for the strong performance of the Nasdaq 100.<\/p>\n\n\n\n
<\/a>Nvidia, Apple and Microsoft drive index upwards<\/h2>\n\n\n\nThe three companies with the highest market capitalization in the index are Nvidia, Apple and Microsoft. These have a weighting of almost 25 % in the Nasdaq 100. Apple and Nvidia have recently been in a neck-and-neck race for the title of the company with the highest market capitalization. Nvidia is currently slightly ahead and has overtaken Apple.<\/p>\n\n\n\n
The strong performance of these three stocks was therefore largely responsible for the positive development of the Nasdaq 100. It is therefore also a good idea to keep an eye on the performance of these leading stocks<\/p>\n\n\n\n
<\/a>Market breadth somewhat weaker recently<\/h2>\n\n\n\nAs mentioned above, the large companies with the highest market capitalization and index weighting are currently largely responsible for the sharp rise in share prices. It therefore makes sense to also analyze the market breadth in order to see how the broad mass of shares is behaving. In the Advance Decline Line, we have been seeing a divergence from the performance of the equity indices for several weeks now. As far as the Nasdaq 100 is concerned, the Nasdaq 100 Equal Weighted Index Fund (symbol: QQEW) offers the opportunity to examine the performance of the equally weighted index.<\/p>\n\n\n\n
As the following chart shows, the equally weighted Nasdaq 100 is also in an intact upward trend. This means that the majority of stocks in the Nasdaq 100 are in an uptrend. However, unlike the QQQ and the Nasdaq 100 Index, the QQEW has not been able to rise to new highs recently, which is a sign of relative weakness. However, this signal should not be overestimated, as it has a comparatively poor accuracy rate as a forecasting tool for the development of the Nasdaq 100. It can also be seen that the QQEW has performed strongly, at least in the last few days. Looking at the chart, an upward breakout seems more likely than a trend reversal. The highs are stable and the lows are rising, thus literally pushing upwards.<\/p>\n\n\n\n<\/figure>\n\n\n\nNasdaq 100 Equal Weighted Index Fund (QQEW)<\/p>\n\n\n\n
Another instrument for measuring market breadth is the number of shares that are above the 200-day line. The Nasdaq 100 currently has 67 % above the SMA 200, the S&P 500 around 70 % and the New York Stock Exchange (NYSE) around 63 %.<\/p>\n\n\n\n<\/figure>\n\n\n\nNasdaq 100 - percent shares above SMA 200<\/p>\n\n\n\n
This means that a large proportion of all shares are in an upward trend, which is a positive signal. However, these figures have fallen back a little in recent weeks.<\/p>\n\n\n\n
All in all, the analysis of market breadth confirms the bull market as well as the upward trend in the Nasdaq 100. However, due to the overbought market situation in combination with the somewhat weaker market breadth in the short term, a correction of a few percentage points would not be surprising.<\/p>\n\n\n\n
<\/figure>\n\n\n\nPerformance charts: Nasdaq 100, S&P 500, Dow Jones<\/p>\n\n\n\n
The leading role of the technology sector continues to be one of the most important driving forces behind the current bull market. In particular, the heavyweights in the index are responsible for the strong performance of the Nasdaq 100.<\/p>\n\n\n\n
<\/a>Nvidia, Apple and Microsoft drive index upwards<\/h2>\n\n\n\nThe three companies with the highest market capitalization in the index are Nvidia, Apple and Microsoft. These have a weighting of almost 25 % in the Nasdaq 100. Apple and Nvidia have recently been in a neck-and-neck race for the title of the company with the highest market capitalization. Nvidia is currently slightly ahead and has overtaken Apple.<\/p>\n\n\n\n
The strong performance of these three stocks was therefore largely responsible for the positive development of the Nasdaq 100. It is therefore also a good idea to keep an eye on the performance of these leading stocks<\/p>\n\n\n\n
<\/a>Market breadth somewhat weaker recently<\/h2>\n\n\n\nAs mentioned above, the large companies with the highest market capitalization and index weighting are currently largely responsible for the sharp rise in share prices. It therefore makes sense to also analyze the market breadth in order to see how the broad mass of shares is behaving. In the Advance Decline Line, we have been seeing a divergence from the performance of the equity indices for several weeks now. As far as the Nasdaq 100 is concerned, the Nasdaq 100 Equal Weighted Index Fund (symbol: QQEW) offers the opportunity to examine the performance of the equally weighted index.<\/p>\n\n\n\n
As the following chart shows, the equally weighted Nasdaq 100 is also in an intact upward trend. This means that the majority of stocks in the Nasdaq 100 are in an uptrend. However, unlike the QQQ and the Nasdaq 100 Index, the QQEW has not been able to rise to new highs recently, which is a sign of relative weakness. However, this signal should not be overestimated, as it has a comparatively poor accuracy rate as a forecasting tool for the development of the Nasdaq 100. It can also be seen that the QQEW has performed strongly, at least in the last few days. Looking at the chart, an upward breakout seems more likely than a trend reversal. The highs are stable and the lows are rising, thus literally pushing upwards.<\/p>\n\n\n\n<\/figure>\n\n\n\nNasdaq 100 Equal Weighted Index Fund (QQEW)<\/p>\n\n\n\n
Another instrument for measuring market breadth is the number of shares that are above the 200-day line. The Nasdaq 100 currently has 67 % above the SMA 200, the S&P 500 around 70 % and the New York Stock Exchange (NYSE) around 63 %.<\/p>\n\n\n\n<\/figure>\n\n\n\nNasdaq 100 - percent shares above SMA 200<\/p>\n\n\n\n
This means that a large proportion of all shares are in an upward trend, which is a positive signal. However, these figures have fallen back a little in recent weeks.<\/p>\n\n\n\n
All in all, the analysis of market breadth confirms the bull market as well as the upward trend in the Nasdaq 100. However, due to the overbought market situation in combination with the somewhat weaker market breadth in the short term, a correction of a few percentage points would not be surprising.<\/p>\n\n\n\n
As mentioned above, the large companies with the highest market capitalization and index weighting are currently largely responsible for the sharp rise in share prices. It therefore makes sense to also analyze the market breadth in order to see how the broad mass of shares is behaving. In the Advance Decline Line, we have been seeing a divergence from the performance of the equity indices for several weeks now. As far as the Nasdaq 100 is concerned, the Nasdaq 100 Equal Weighted Index Fund (symbol: QQEW) offers the opportunity to examine the performance of the equally weighted index.<\/p>\n\n\n\n
As the following chart shows, the equally weighted Nasdaq 100 is also in an intact upward trend. This means that the majority of stocks in the Nasdaq 100 are in an uptrend. However, unlike the QQQ and the Nasdaq 100 Index, the QQEW has not been able to rise to new highs recently, which is a sign of relative weakness. However, this signal should not be overestimated, as it has a comparatively poor accuracy rate as a forecasting tool for the development of the Nasdaq 100. It can also be seen that the QQEW has performed strongly, at least in the last few days. Looking at the chart, an upward breakout seems more likely than a trend reversal. The highs are stable and the lows are rising, thus literally pushing upwards.<\/p>\n\n\n\n Nasdaq 100 Equal Weighted Index Fund (QQEW)<\/p>\n\n\n\n Another instrument for measuring market breadth is the number of shares that are above the 200-day line. The Nasdaq 100 currently has 67 % above the SMA 200, the S&P 500 around 70 % and the New York Stock Exchange (NYSE) around 63 %.<\/p>\n\n\n\n Nasdaq 100 - percent shares above SMA 200<\/p>\n\n\n\n This means that a large proportion of all shares are in an upward trend, which is a positive signal. However, these figures have fallen back a little in recent weeks.<\/p>\n\n\n\n All in all, the analysis of market breadth confirms the bull market as well as the upward trend in the Nasdaq 100. However, due to the overbought market situation in combination with the somewhat weaker market breadth in the short term, a correction of a few percentage points would not be surprising.<\/p>\n\n\n\n<\/figure>\n\n\n\n<\/figure>\n\n\n\n