Twenty years ago the NDX 100/Dow Jones Ratio created a topping pattern, as monthly momentum was sky-high, as the Dot.com peak was taking place. Following this setup, the NDX 100 fell nearly 90% in less than three years.

The NDX/Dow ratio over the past 90-days is testing the 2000 highs as momentum is back at 2000 highs at (1).

The ratio is currently testing 8-month rising support at (2).

The ratio would send at least a caution message, possibly a bearish message, if the ratio breaks support at (2), as momentum looks to be rolling over!

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past