Nasdaq 100 is more Oversold than March 2020
May 21, 2022 Leave a comment
Is Tech dead ?
Hardly !
When measured on a Weekly basis, the Nasdaq 100 Index has made its 6th trip into Oversold territory within the past 32 years.
This week also marked a 7th consecutive weekly decline for the Nasdaq 100, something not seen since October 2008.
As written in last week’s ‘Macro Extremes’ edition, an extended streak only suggests that we are closer to that streak reaching exhaustion. This is not to say that the a new streak commences in the opposite direction.
For through October & November 2012, we saw 6 continuous weeks of decline to then be followed by 2 ‘up’ weeks and then more 2 weeks down.
Incidentally, following the savage decline of March 2020, the Relative Strength Indicator (RSI) was barely Oversold at a reading of 29.99.
Today’s reading is lower than that.
May 21, 2022
by Rob Zdravevski
rob@karriasset.com.au
