When considering stock performance, most analysts and money managers – and certainly retail investors – focus on the twists and turns of the benchmark Standard & Poor’s 500 index. Beat the S&P 500 and collect a nice check for your investing acumen. In today’s market this index is even more important, because it is now the last man standing.
I say that even though the Nasdaq is officially in a rising trend this year and above its 200-day moving average. The S&P 500 still has neither of those two distinctions, yet it is still my line in the sand between bull and bear trends.
Let’s look at why the Nasdaq, in my view, is already a dead man walking. There is nothing complicated about it: The long-term chart shows serious internal decay in the form of falling momentum readings (see Chart 1).
Read the Full Article: Source – Barrons
Time For Truth: (Barrons) – Big Stocks Are Last Hope for a Decaying Market