Charting the Markets: Nasdaq 100 Is in a Good Spot for a Year-End Run

There is a saying on the technical side of Wall Street: "The best trends rarely give you a chance to get in." Such is the case with the Nasdaq 100 (QQQ), the index that carries all of the "Magnificent Seven" names and so many other big movers.

Much as we like to invest or trade in the predictability and reliability of stock indexes like the QQQ, there is worry because too many people are invested in this group. Why is that troublesome? Remember, if a boat gets to heavy on one side it may tilt over and capsize.

For some time now the dominant index for money flow as been the Nasdaq 100. No question about it, 2023 was a watershed year for the QQQ, up better than 53% and it has followed up with nearly half that much after finishing eleven months in 2024. Simply outstanding, but what is next?

The chart shows the QQQ is in a really nice spot and poised for a run to the end of 2024. The candles in the top pane remain blue, which is a strong buy signal on the GoNoGo composite indicator, and the parabolic SAR (stop and reverse system) in the top pane remains bullish and supportive.

Other indicators, such as MACD (moving average convergence/divergence), have been on buy signals for weeks and continue, and the money flow is impressive. The CMF at the bottom has been bullish since summer, a five-month period where we did see some underperformance, but the money continued to flow, and not just to Nvidia NVDA or Apple (AAPL).

This last month of the year could be a tremendous one for the Nasdaq 100, following up on an historic November where its components roared higher by about 5%. Buckle up!

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At the time of publication, TheStreet Pro Portfolio was long NVDA and AAPL.