Investors might celebrate a quite hooray as the NADAQ closed just above its October 2007 price for the first time in 817 trading days. Yet these festivities would be tempered by the deepening variance between the upturn of the NASDAQ and the other two indices. At todays prices, the DJIA stands at 86.6 percent of its 2007 high; the S&P500 even deeper lag is 84.9 percent.
The diagram showing the NASDAQ recovery percentage reveals the increasing difference between that and the S&P500 recovery rate. Note that the NASDAQ was falling more rapidly than then the S&P500 back in 2007. Yet ever since, the NASDAQ upturn beat the S&P500. (That holds also for the DJIA; its close is 86.6 percent of the 2007 high.)
Further, this NASDAQ performance advantage has been increasing in recent weeks, since the markets pace became stronger. Note how the green line is becoming steeper and its distance from the red line is becoming wider.
Thus, the question of the moment is will this advantage become larger in the near term, or will the DJIA and the S&P500 retrieve their parity. Investors who get this answer right surely will be in position to maximize their portfolio performance.
DJIA .36 percent
NASDAQ .68 percent
S&P500 .55 percent