A Rising Tide
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The Nasdaq 100 index is mostly represented by technology-related stocks. Recently, these stocks have been underperforming the broad market on a relative basis, as shown in the chart to the left. These stocks have gotten a bounce off of recent lows, and the index is now at about its short-term moving average, which is a positive sign. There is no telling if this pullback will continue, but technology has seen some recent positive momentum, although is still relatively underperforming the S&P 500. Ironically, the components of the Nasdaq make up 40% of the S&P 500. In other words, different sectors have been leading the markets, like Financials, industrials, and energy.
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