The NASDAQ continues to soar as it added more than one percent for the third day in a row. Today’s diagram reveals just how much the NASDAQ has grown relative to the overall market appreciation as measured by the S&P500. It is well beyond twice the value of the S&P500 – though it remains far below the 3.6 ratio of the market collapse in 2000.
Yet given many other facets of recent days, a cautious attitude may be the preferred mode as this bull market goes higher and higher. Today’s close comes some 1,206 trading days since the last market bottom in 2009. That is far greater than the last expansion, which lasted 1,153 days before prices collapsed.
Then there is the rising interest rate on the Ten Year Treasuries. It has added 8.5 percent since the end of November, causing its yield to rise from 2.7 percent to today’s 2.9 percent. At the same time, the S&P500 added 1.4 percent. While this pattern may be a short term market dislocation, it nevertheless bears scrutiny because in the long run, interest rates and asset values move in opposite directions.
Nevertheless, the market continues to register new highs, as it did once more today.
DJIA .45 percent
NASDAQ 1.08 percent
S&P500 .53 percent
