NASDAQ-100 Weakens Further: A Price Chart Analysis

Apple
AAPL
, Microsoft
MSFT
and Amazon
AMZN
are the three largest elements of the NASDAQ-100 Index and it’s been months since any of them have seen increased highs. Buyers need these increased highs because it signifies upward development and lack of it suggests the disagreeable reverse.

The NASDAQ-100 displays the route of those 3 majors and it accommodates and measures the motion of many tech and social media corporations. There’s a particular lack of boring, mature names that you simply discover within the Dow Jones Industrial Common comparable to Normal Electrical
GE
and Normal Motors
GM
.

The index is carefully watched as a basic indicator of the power of development shares to maintain that development going. With low rates of interest that made it comparatively simple for such companies to determine themselves as the brand new wonders of capitalism. Now that the Fed is pushing increased charges, the NASDAQ-100 magic is sporting off.

Because it’s the most important element of the index and since it’s the most important holding within the Berkshire Hathaway
BRK.B
fund run by Warren Buffett and Charlie Munger, right here’s the day by day worth chart for Apple:

Extra promoting than shopping for is conserving Tim Cook dinner’s big tech firm from heading increased. The August peak got here simply earlier than Fed Chair Jerome Powell made his hawkish remarks about curiosity hikes through the Jackson Gap, Wyoming retreat. The inventory has been unable to regain the previous momentum since then.

Check out the day by day worth chart for the NASDAQ-100:

At the moment’s closing worth, on the low finish of the day by day buying and selling vary, takes it again under the 50-day shifting common. The 200-day shifting common is shifting relentlessly decrease because the NASDAQ-100 is unable to achieve that degree for months now. Whether or not the mid-October low holds is the query.

Right here’s how the weekly chart for the NASDAQ-100 seems:

It’s apparent that the height got here in late 2021 at about 16,500 and that it’s dropped since then with the occasional short-lived rally. On the present worth of 11,345, the index has declined from that top by simply over 31%.

The 50-week shifting common turned over within the March/April, 2022 and is headed downward. The NASDAQ-100 is having bother staying above the 200-week shifting common for greater than only a few weeks.

Right here’s the month-to-month chart for the NASDAQ-100:

You’ll be able to see how effectively development shares can do when the rates of interest keep low and the Fed is accommodating. The highest is evident initially of 2022 when that issue started to be referred to as into questions. The month-to-month drop manages to stay above the 50-month shifting common.

These anticipating a Santa Claus rally could also be dissatisfied this 12 months because the tech sector is just not but feeling the vacation spirit.

Not funding recommendation. For info functions solely.