Top: The Dow-Nasdaq Ratio Approaching Record Low

Saw this mentioned in a comment at the Slope so I dug into the numbers. I have the low as 1.97 on March 8, 2000. The ratio is currently a bit more than 11 percent away from that low. The Nasdaq has beaten the DJIA by 15 percent in the past 6 monnths. In 2000, the ratio crossed the current level on February 23, 2000. It took 15 calendar days and 11 trading days to reach the peak/nadir of the ratio. If there's a "double bottom" cming for the ratio, it might be here soon.

The QQQ-DIA ratio has farther to go. The current level was hit in January 2000. The Nasdaq would gain 40 percent in two months.

I don't see a melt-up in Nasdaq coming. Assumiung the ratio peak in QQQ-DIA is reached, more likely the Dow slumps first with maybe some component getting whacked, while stocks like Tesla explode in one final short-squeeze.

Does any of this matter? Yes, I think it does. Here is the tech SPDR XLK divided by SPY and DIA with the final run performance of the ratio. Worth noting that the current ratio level was first breached in early 1999 and didn't break out until later in the year. A replay of this ratio would probably require one more Fed intervention, and would take the Dow-Nasdaq ratio to a new all-time low.

Here's the "market top" chart I periodically post: