Dow has already rallied ~18% off its October low and retraced 62% of its max YTD drawdown
Nasdaq is only about 11% above its October low, representing less than a 20% retracement pic.twitter.com/0ixHLBefPe
— Steven Strazza (@sstrazza) November 22, 2022
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The Dow closed just a hair shy of a 7-month high today and continues to be the strongest major index. The Nasdaq, on the other hand, continues to be burdened by its heavy exposure to Technology stocks. Steve points out that the Dow has retraced more than 62% of its decline, while the Nasdaq has retraced less than 20% of its respective decline. At this point, the Nasdaq needs to rally more than 40% to reach an all-time high, while the Dow only needs about 8%. Which horse do you want to bet on?