Nasdaq Lagging

The Indices surged today with new highs in the Dow and S&P. While the Nasdaq and Russell were strong today, it is interesting to note that they didn't make new high and are therefore lagging. Typically, these are the indices that should lead rallies, as they show investors are willing to speculate on riskier equities. When large caps lead the way, it shows rotation to more defensive stocks.

That being said, the potential for another strong leg up is high. The Nasdaq cleared the triangle it has been forming and the semiconductors had a nice day.

Here is a chart showing the four major indices and how the Big Caps are leading the way right now.


As usual, I will be taking the day off from regular trading tomorrow as it is options expiration. Good Luck,


DT