Nasdaq - back where it belongs 1.7 x SPWell guys the Nasdaq may continue down however the good news is that the
Nasdaq is back where it belongs now.
Ever since the Nasdaq started it always tracked the SP500 by a factor of 1.5-1.9,most of the time at 1.7. This lasted until 1998 when the Nasdaq shot up.
Well it is back into its traditional range now of 1.7 or so x SP500 so it is back in a safe range. I have been following this range for a
while and thought it was no longer valid a few years back but it
is back again.
My prediction : Nasdaq will hit 1750 (which just happens to be about 1.5 x SP of 1200) and if it holds then we have a bottom otherwise 1330 is next with the S&P following it. Even when it turns around the Nasdaq will be locked within 1.5-1.9 x SP range (if not right away but over time)
Regards
ed