NASDAQ 100: How Long Will This Index Fly High?

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NASDAQ 100: How Long Will This Index Fly High?
Will any of these stocks finish the race to $1,000?

By Bob Stokes
Wed, 18 Apr 2012 14:30:00 ET

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In recent months, we know that the prices of well-known technology stocks have skyrocketed.

But many market observers may not realize just how historically intense the interest in technology names has been. Read this excerpt from our March Financial Forecast:

On February 9, NASDAQ volume surged to nearly three times NYSE volume, reaching its highest level in the 16-year history of the data, and probably ever. Traders are rushing into OTC stocks relative to blue-chip stocks to a degree that even exceeds the great technology mania of the late 1990s.Yet the foundation of the latest rage for tech stocks is full of cracks. While NASDAQ volume is far-outpacing NYSE volume, both levels of volume are contracting (bottom lines on the chart below).

Even after NASDAQ volume started contracting and the market pulled back, optimism remained high. The question hasn't been whether big-name NASDAQ high-flyers would continue to soar, but which one would win a contest:

The one notable index that appears to be holding up relative to the others is the NASDAQ 100, fueled by four stocks that "are in a four-way battle to see which will be the first…to break the $1000-a-share barrier." According to a USA Today article last week, Priceline, Apple, Google and Intuitive Surgical are battling for the honor.

Short Term Update, April 9

Likewise, an April 13 CNBC headline reads: Google & Apple: The Race to $1000

But will this race be over before the finish line is even in sight?

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Tags: Elliott wave, history, Nasdaq Composite, sentiment, volume

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