I agree that the Nasdaq will need the S&P and Dow to clear resistance for any continued move to the upside. But consider this – Year to date the Nasdaq is down 28% while the S&P is down 17% and the Dow is only down 12%. So the Nasdaq has more ground to make up just to get back to ground zero. So could it be possible that we continue to see the Nasdaq out perform both the Dow and S&P until there is more equality in the indices?

The Nasdaq has been down year to date more than the other big two, but it started the the slide well ahead of the other two as well as far as percentage gains. Thus it could fall further on a percentage basis and still no ‘ahead’ of the other two. What the Nasdaq is doing right now is leading the market, and it is doing so in a very healthy two steps up, one step back fashion (150 points in gains, 70 points in selling). Right now it is right at a level where it could start seeing some selling pressure before the next move higher. It was good to see the other two clear resistance, but they need to show they mean business. In that respect you are right; we probably will see the Nasdaq continue to outperform as big money flows into the old leaders. They may get a nasty wakeup call at some point as overhead supply dumps on them, but looking at the volume flowing into these, who knows when that would happen? There is money being spent on tech stocks despite all of the admonitions by analysts to stay away. They are worried about a nasty correction that may come, and they want to say ‘I told you so.’ Well, what if these stocks run up another 100% first? Makes them look like the bears back in 1995 that said stay out or short the market. Eventually they were right, but as with almost everything in life, timing is everything.