NASDAQ to outperform the SPX to the downside in the coming crash
These charts show the 3 months and the hourly charts of the RATIO of NDX (NASDAQ100 CASH) to the SPX (S&P500 CASH).
It is no surprise the ratio has been rising since the dot-com crash lows and now have reached valuation levels of NASDAQ compared to S&P not seen in March 2000.
The chart on the left and the pink dotted horizontal line shows a comparison of this ratio in the highs just prior to the Dot.com crash that started in March 2000 to what is happening now.
The ratio slightly exceeded the dot.com crash highs but since has violently been rejected and forming a monthly, 3 monthly candle shooting Shooting Star pattern which is not yet technically valid as the candle has yet to close but looking like it will hold based on the leading diagonal 5-wave drop (hourly chart on the right) which indicates a trend reversal down at least for the short to medium term.
There is certainly a rotation happening out of tech now.
How long this holds remains to be seen but these charts show that this could be just the beginning - especially if compared to the dot-com highs and what happened in the 2-years after the dot-com highs.
Cheers!
Cyrus
It is no surprise the ratio has been rising since the dot-com crash lows and now have reached valuation levels of NASDAQ compared to S&P not seen in March 2000.
The chart on the left and the pink dotted horizontal line shows a comparison of this ratio in the highs just prior to the Dot.com crash that started in March 2000 to what is happening now.
The ratio slightly exceeded the dot.com crash highs but since has violently been rejected and forming a monthly, 3 monthly candle shooting Shooting Star pattern which is not yet technically valid as the candle has yet to close but looking like it will hold based on the leading diagonal 5-wave drop (hourly chart on the right) which indicates a trend reversal down at least for the short to medium term.
There is certainly a rotation happening out of tech now.
How long this holds remains to be seen but these charts show that this could be just the beginning - especially if compared to the dot-com highs and what happened in the 2-years after the dot-com highs.
Cheers!
Cyrus
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