Nasdaq 100 & Dow Jones Forecast:
- The Nasdaq 100 spiraled toward technical support Tuesday, falling to its lowest level since early April
- Meanwhile, industrial stocks and the Dow Jones index crept higher
- Sell in May and Go Away: Should You Sell Stocks in the Dow?
Nasdaq 100 Nosedives as Dow Jones Holds Firm, is the Rotation Trade Back?
The Nasdaq 100 spiraled lower Tuesday as weakness in technology stocks and discussions around potential rate hikes spurred selling activity. As a result, the tech-heavy index fell to its lowest level since early April before finding buyers around technical support at 13,400. After a day of declines, the Nasdaq 100 officially closed 1.88% lower.
Nasdaq 100 Price Chart: 1 – Hour Time Frame (February 2021 – May 2021)
While the Nasdaq 100 and popular technology stocks were searching for buyers, the Dow Jones enjoyed a slight daily gain despite prior turbulence and considerable weakness elsewhere. The disjointed price action sparked a revival in discussion around the reflation trade theme which originally gained popularity early in the first quarter when large technology stocks first began to stumble. The reflation trade theme can be roughly measured through a ratio of the Nasdaq 100 to the Dow Jones.