Are the Signs Pointing to Another Nasdaq-100 Correction?

At some point in 2024, market sentiment began to shift. Even though the Nasdaq-100 was continuing to set new all-time highs, the number of stocks trading above their 200-day moving average declined pretty steadily from January all the way through December. The trend was fairly intuitive at the time, because we knew that the "Magnificent Seven" stocks were almost single-handedly pulling the major averages higher. In hindsight, that trend was interesting because it preceded a more than 20% correction for the index related to President Donald Trump's "Liberation Day" tariffs. This same story also played out in 2021. The Nasdaq-100 and the Invesco QQQ ETF (NASDAQ: QQQ) that tracks it were in a furious bull market ascent as the economy was recovering from the COVID-19 pandemic shutdowns, thanks to a multitrillion-dollar stimulus package from the U.S. government. The index spent most of the year moving higher, with just a few bumps along the way.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool