This Is Holding the Nasdaq 100 Back

There's no question the broad market has had an incredible 2024 so far... The S&P 500 Index is up roughly 21% this year. It has also been hitting new highs again. And so has the Dow Jones Industrial Average. [Chaikin PowerFeed]( This Is Holding the Nasdaq 100 Back By Vic Lederman, editorial director, Chaikin Analytics There's no question the broad market has had an incredible 2024 so far... The S&P 500 Index is up roughly 21% this year. It has also been hitting new highs again. And so has the Dow Jones Industrial Average. But what about the tech-heavy Nasdaq 100 Index? Folks assume that hot tech stocks are supposed to soar past the slower-moving broad market. Well, that hasn't happened recently. But as I'll explain, a quick look at the Power Gauge tells us it likely will soon... Recommended Links: ['THE AI EXODUS HAS BEGUN']( SELL these popular AI stocks immediately (Warren Buffett, Ken Griffin, Stanley Druckenmiller, and many other famed billionaires are all dumping shares already)... and BUY the one obscure, niche group of stocks that could hand you 500% to 1,000% gains in the coming years as the great AI exodus plays out. [Get the full story here](. [SOLD OUT!]( The 2024 Stansberry Conference is rapidly approaching, and in-person tickets are sold out... But for a limited time, you can still get all the same presentations and stock picks LIVE with a discounted livestream ticket – no travel required. Claim your [Livestream Pass here](. First, if you're wondering what's holding the Nasdaq 100 back... just look at Big Tech. You've likely heard plenty of stories in the media about layoffs. For example, back in the spring Tesla (TSLA) announced plans to lay off roughly 14,000 people. In August, Intel (INTC) dropped another 15,000 workers. That same month, Dell Technologies (DELL) let go of 12,500 employees. That doesn't even touch on the antitrust probe against Google's parent company Alphabet (GOOGL). We've heard increasing chatter about a potential breakup of the company. (If you missed it, I shared my long-term view on that situation [back in August]( I put together a quick list of the so-called "Magnificent Seven" stocks in the Power Gauge. And it illustrates the Nasdaq 100's problem perfectly... Put simply, Big Tech has struggled over the recent three-month period. And that's a big deal for the Nasdaq 100. As you can see, Apple (AAPL) has barely moved sideways. And it makes up roughly 9% of the index. Microsoft (MSFT) is the next largest holding at about 8%. It's down more than 9% over that three-month period. So it might seem simplistic, but it's obvious that Big Tech is what's holding the Nasdaq 100 back from new highs. But not for long... The below screenshot from the Power Gauge shows the Magnificent Seven's performance over the recent one-month period. As you can see, it's a different story... It's obvious that whatever was tying Big Tech down isn't as bad as it was. And the Power Gauge agrees broadly, too. We use the Invesco QQQ Trust (QQQ) to track the index in our system. And QQQ recently turned "bullish" in the Power Gauge. It has mostly been in "neutral" territory since late July. Better still, the number of "bullish" stocks in QQQ is growing. Here's how the breakdown stands in the Power Gauge... As you can see, QQQ holds 24 stocks with "bullish" or better ratings. Meanwhile, 59 are rated "neutral." And 17 earn a "bearish" or worse rating. Obviously, we would want to see more stocks move from "neutral" to "bullish." But as we've seen today, that's in progress. Companies like Amazon (AMZN), Microsoft, and Alphabet are still in "neutral" territory in the Power Gauge. But their performance over the recent one-month period shows us that they're in the process of turning around... big time. With that kind of momentum, it makes sense to expect that the Nasdaq 100 could be on the way to new highs again soon. Regular readers know that Chaikin Analytics founder Marc Chaikin has been predicting [a big end to this year for stocks](. And with Big Tech on the move higher again... that helps support the case for more upside ahead. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.11% 11 14 5 S&P 500 -0.17% 159 273 62 Nasdaq -0.11% 24 61 15 Small Caps -0.58% 466 1056 399 Bonds -0.4% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +3.38% Financial +1.6% Industrials +1.06% Discretionary +0.97% Health Care +0.84% Materials +0.59% Staples -0.01% Communication -0.08% Energy -0.09% Real Estate -1.87% Utilities -3.54% * * * * Industry Focus Innovative Technology Services 23 68 8 Over the past 6 months, the Innovative Technology subsector (XITK) has underperformed the S&P 500 by -4.18%. However, its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #9 of 21 subsectors and has moved up 3 slots over the past week. Top Stocks [rating] TSEM Tower Semiconductor [rating] G Genpact Limited [rating] NVDA NVIDIA Corporation * * * * Top Movers Gainers [rating] CRWD +5.56% [rating] MOS +4.43% [rating] MU +3.92% [rating] BEN +3.01% [rating] FTNT +2.67% Losers [rating] FSLR -9.29% [rating] ENPH -5.82% [rating] AMD -4.0% [rating] GNRC -3.47% [rating] MRNA -3.45% * * * * Earnings Report Reporting Today Rating Before Open After Close BK, PGR No earnings reporting today. Earnings Surprises [rating] DAL Delta Air Lines, Inc. Q3 $1.50 Missed by $-0.03 [rating] AEHR Aehr Test Systems, Inc. Q1 $0.07 Beat by $0.05 [rating] NEOG Neogen Corporation Q1 $0.07 Missed by $-0.02 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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