Could NASDAQ Make New Highs? ($NDX)

By Lawrence G. McMillan

When the tech boom of the 1990's collapsed, the NASDAQ Composite Index ($COMPQ) and other related indices (NASDAQ 100: $NDX) and their ETF’s (QQQ) collapsed as well. The highs that were set in 2000 seemed as if they would never be breached, and they haven’t been – so far. But with nearly everything else having recovered to new all-time highs, one wonders if the same could happen for the NASDAQ indices.

For the record, here are the peaks, peak dates, and current prices:

Index                                    Peak Date      Peak Price*    Cur. Price
NASDAQ Comp ($COMPQ)     Mar 10, 2000   5132.52           4757.36
NASDAQ 100 ETF (QQQ)        Mar 24, 2000   120.50             104.80
NASDAQ 100 ($NDX)              Mar 24, 2000   4816.35           4288.16

These are currently below their 2000 peaks by –7.3%, –13.0% and –11.0%, respectively (*: peak prices, according to Yahoo Finance).

It should be noted that other small-cap indices such as Value Line, Russell 2000 ($RUT or IWM), and Small-Cap 600 (SLY is the ETF symbol) have been making new all-time highs for several years now...

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