Because the spread chart (SP500 over NAS100) clearly shows the multi year overperformance of the Nasdaq100 index is over! Weekly spread chart is bullish over the Kumo cloud, what's more, we possibly have a Heikin-Ashi buy signal this week.
Both index can, and will go either up or down (I think more likely down as I smell some bearish bias), but one thing is very likely: the broad US market will perform better than Tech sector composite. The extreme growth story of last 6-8 years is over!
Trade idea:
1. If you are bearish in general, short Nasdaq100 rather than SP500
2. If you'd like to trade the relative performance, then buy ESU6 vs selling NQU6 (Sept Spread)
Both index can, and will go either up or down (I think more likely down as I smell some bearish bias), but one thing is very likely: the broad US market will perform better than Tech sector composite. The extreme growth story of last 6-8 years is over!
Trade idea:
1. If you are bearish in general, short Nasdaq100 rather than SP500
2. If you'd like to trade the relative performance, then buy ESU6 vs selling NQU6 (Sept Spread)
