are all above their key moving averages, which are trending higher, signaling sustained bullish conditions. Although the Nasdaq 100 has lagged behind the S&P 500, this seems to be due to sector rotation—a normal and positive development typically seen in strong market environments.
From a price perspective, the Nasdaq 100 remains in a confirmed uptrend, sitting at all-time highs and trading above its 50-, 100-, and 200-day moving averages, all of which are trending higher. This aligns with the broader bullish market environment. However, the MACD momentum indicator has turned down and is currently on a sell signal, suggesting some loss of upward momentum.
The lower panel of the chart highlights a notable shift in relative strength. Since the beginning of 2023, the Russell 2000 underperformed the S&P 500, a trend shown by the downtrending blue line. However, since July of this year, that trend has reversed, with the Russell 2000 now outperforming the S&P 500, as indicated by the upward green arrow. This resurgence in relative strength suggests growing investor confidence in small-cap stocks, often viewed as a risk-on area of the market.