The Nasdaq 100 rally that took place from late October 2023 to early March 2024 has come to an end, prompting a closer look at the current price action of the index. Rather than relying on quarterly reports or financial media, it is important to observe the behavior of buyers and sellers in the market to determine the direction of the trend. The Nasdaq 100 daily price chart shows that the index peaked in mid-March around 18500, dropped to 17000 in mid-April, and has since rebounded to over 18000 as of May. Additionally, the index has two closes above the 50-day and 200-day moving averages, both of which are trending upwards.
Looking at individual stocks within the Nasdaq 100, Apple’s daily price chart shows a gap up above the 200-day moving average following the announcement of a stock buyback program and a dividend. However, the stock did not make a new high on this news, which raises questions about the significance of the 50/200-day moving average crossover. Meta Platforms, another major stock in the index, experienced significant volatility with a gap up at the beginning of February, a new high in early April, and a gap down at the end of April. As of May, the stock appears to have filled the gap down but continues to trade below a downward-trending 50-day moving average.
NVIDIA, a semiconductor maker known for its AI chips, saw a rally from a low of under $400 in late October to a peak of $975 in early March before dropping to around $750 in mid-April. The stock has rallied again in May to the $925 area and currently has three closes above the 50-day moving average. However, a recent -1.72% decline on increased volume suggests that the stock may not be as exciting as it seems. Overall, the analysis of these individual stocks and the Nasdaq 100 index as a whole provides valuable insights into the current market trends.
In conclusion, observing the price action of individual stocks and indices like the Nasdaq 100 can provide valuable information about market trends and potential investment opportunities. While quarterly reports and financial media can be informative, it is essential to look at how buyers and sellers are interacting in the market to determine the direction of the trend. As of May 2024, the Nasdaq 100 index has rebounded from a mid-April drop and has two closes above key moving averages that are trending upwards. Individual stocks like Apple, Meta Platforms, and NVIDIA also show unique price patterns and trends that can inform investment decisions in the current market environment. Further analysis and commentary on price charts can be found at johnnavin.substack.com for more insights into market trends and investment opportunities.
