Wall Road has continued to rattle off some new document highs in October, however the absence of 1 main index from the record is beginning to change into obtrusive, in accordance with Raymond James. Quantitative and technical strategist Javed Mirza identified in a word to shoppers that the Nasdaq 100 has not set a document excessive since July. The relative battle of that tech-heavy index is presumably an indication that the broader bull market is on the verge of coming into into a brand new section — and getting near a peak, in accordance with Mirza. “The Nasdaq 100 is an efficient proxy for the extra ‘growthy’ areas of the market and this damaging divergence means that Portfolio Managers have begun to shift away from the extra growth-oriented areas of the market, in line with a shift into the late levels of the present 4-12 months Cycle. The Nasdaq 100 has didn’t reclaim the highs it set in July, regardless of the S & P 500 , TSX Composite, and Dow Jones Industrials all scoring new all-time worth highs,” Mirza wrote. .NDX 6M mountain The Nasdaq 100 has not set a brand new document excessive since July. On Monday, the Nasdaq 100 was buying and selling about 2% under its document shut. Technical indicators counsel that it will not shut that hole any time quickly. “The Nasdaq 100 simply triggered a brand new short-term ‘mechanical promote’ sign, diverging from the opposite North American fairness indices,” Mirza mentioned. The Nasdaq 100’s hunch shouldn’t be the one issue pointing to towards a brand new section for the bull market. Different notable knowledge factors embody the Cboe Volatility Index (VIX) making increased lows and the Canadian TSX Composite outperforming the S & P 500, whereas WTI crude pushing above $94 per barrel could be a fourth level, Mirza wrote. To make certain, even the late stage phases of a bull market can final for fairly some time. Mirza does say that the “path of least resistance” remains to be increased for shares general heading into 2025.
