For many years now, there has been a dichotomy between the DOW and the NASDAQ that always needs to be looked at and considered.
Since the Tech industry (NASDAQ Stocks) has been such a key positive issue in the market, the NASDAQ has clearly outperformed the DOW when the market has been in an uptrend and the opposite has also been the case when the market is in a downtrend. For the past 3 months (since the stock market started to recover and recently make new all-time highs), the NASDAQ has rallied 27% and the DOW has rallied 18%. Today the DOW is up 386 points and the NASDAQ is down 237 points, meaning that the dichotomy is working opposite to what it has done the past 3 months. This action could be (or is) indicative that the market is ready to head lower.
Of course, so much of what the market is to do in the next few months is tied in to the "Big Beautiful Trump Bill" in the Senate being voted on this week, that putting a lot of meaning into this dichotomy right now is not dependable.
Nonetheless, I did want to mention this to you because if this dichotomy trend continues the rest of the week, it likely means that the uptrend is over.
Since the Tech industry (NASDAQ Stocks) has been such a key positive issue in the market, the NASDAQ has clearly outperformed the DOW when the market has been in an uptrend and the opposite has also been the case when the market is in a downtrend. For the past 3 months (since the stock market started to recover and recently make new all-time highs), the NASDAQ has rallied 27% and the DOW has rallied 18%. Today the DOW is up 386 points and the NASDAQ is down 237 points, meaning that the dichotomy is working opposite to what it has done the past 3 months. This action could be (or is) indicative that the market is ready to head lower.
Of course, so much of what the market is to do in the next few months is tied in to the "Big Beautiful Trump Bill" in the Senate being voted on this week, that putting a lot of meaning into this dichotomy right now is not dependable.
Nonetheless, I did want to mention this to you because if this dichotomy trend continues the rest of the week, it likely means that the uptrend is over.
