The Nasdaq’s record run is nothing short of “amazing,” and it’s showing no signs of stopping, technical analyst Louise Yamada says.
The tech-heavy index hit another record on Tuesday, closing at 6862.48 for its 66th high this year. According to Yamada, the charts are pointing to an even bigger breakout.
“I think the Nasdaq has been very impressive. It’s up almost 57 percent, it’s well above the 50-day moving average. … We’re headed towards 7,000 next, and then we’ll calculate something higher,” she said Tuesday on CNBC’s “Futures Now.” “Monthly and weekly momentum are positive for the [index], and [while a few of the FANG stocks took a rest] from June to October, now they’re going on to new highs.”
Yamada is referring to the recent rally in big tech that has driven the Nasdaq composite index to new highs. Apple, Microsoft and Amazon, to name a few have all soared to record highs in the last month. Chip stocks like Micron and Nvidia have also been on a tear this year, contributing to the Nasdaq rally.
Yamada believes other indicators also point to more record highs.
“We don’t see a top,” she said.” “The advance-decline line is supporting the advance, and we would have to see three to six months of negative divergences” for things to change.
The Nasdaq composite is outperforming every other major U.S. index this year, up 27 percent.