First look at the NASDAQ, at this time. This was where the action
was in 2000. The DJIA was largely forgotten. It had doubled in less than
a year by February. Once its bubble ended, what would hold the market up?
NASDAQ - 2000 - TOP
The NASDAQ had been where all the action was in 1999 and 2000. When it lost its
strength after its wild straight-up climax in April and showed negative relative strength versus the
DJI with the NASDJI Indicator turning negative as it rallied, the leadership had turned defensive
in the market. And with so much distribution in the defensive DJI, the only thing left to hold
up the market was the Presidential Election. It seemed at the time that Bush's victory was
not well-received. The traditional vistory rall by the partisans could not take the DJI past
the upper band in November and December.
