The Nasdaq Composite is in the red at this writing late Wednesday, but at the start of the session, the Nasdaq Composite and the PowerShares QQQ (NasdaqGM: QQQ) were each up about 3.5% year-to-date.
That continues a stellar run that has seen QQQ, the NASDAQ 100 tracking ETF, nearly quadruple since the March 2009 market bottom. A 38% gain for the fourth-largest U.S. ETF by assets over the past 12 months has it trading at pre-global financial crisis highs last seen in late 2007. There has also been ample talk of Nasdaq 5,000. [Nasdaq Eyes a Run to 5,000]
A look at that the chart of the Nasdaq Composite shows the index is obeying a lengthy, tight uptrend and that a run to 5,000 is not out of the realm of possibility.
“As today’s chart illustrates, the post-financial crisis rally (which began in early 2009) has been significant enough to have the Nasdaq surpass its credit bubble highs of late 2007. In addition, the latest leg of the post-financial crisis rally has the Nasdaq at levels not seen in nearly 14 years. As today’s chart illustrates, the Nasdaq continues to trade within its tightly confined yet steep 15-month uptrend channel,” according to Chart of the Day.
On either a nominal or inflation-adjusted basis, the Nasdaq Composite would still need to rally in significant fashion to reach its all-time highs. In fact, the inflation adjusted data show the Nasdaq needs to gain another 60% to reach its previous record, which adjusted for inflation is almost 7,000.
As we noted earlier today, some Nasdaq-focused ETFs have already touched fresh all-time highs. That group includes the First Trust NASDAQ-100 Ex-Technology Sector Index Fund (NasdaqGM: QQXT). Health care exposure has benefited QQXT in a big way. As of Feb. 25, the NASDAQ-100 Ex-Tech Sector Index had a health care weight of almost 22.6%, or about 830 basis points above the sector’s weight in the NASDAQ 100. [This Nasdaq ETF Hit Another Record High
Chart Courtesy: Chart of the Day
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of QQQ.