At its highs earlier this morning, the Nasdaq Composite was within 2% of its record high from earlier in the year. Besides the steep V-shape of the Nasdaq’s pattern over the last four months, the other aspect of the chart that stands out is just how steep the 50-day moving average is trending lately.
To illustrate just how steep the Nasdaq’s 50-DMA has become, the chart below shows the daily percentage change of the 50-day going back to 1971. Currently, the Nasdaq 50-DMA is rising at an average of over 0.5% per day. That’s an incredible slope and a level that has been exceeded only a handful of times in the Nasdaq’s 50-year history.
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