A lot of analysts have overlaid the Dow from Oct 1929 onto the Nasdaq from Mar 2000 to highlight the bearish parallels. What many analysts fail to mention is that if you bought stock in 1932, you did pretty well over the next five years as the Dow went from 40 back to 190 in 1937. The reason I bring it up is because the Dow from 1932-1935 and the NDX from 2002-2005 show a remarkable similarity.
The red line is the NDX and the black line is the Dow.
If the relationship holds, the NDX should continue to power higher through the rest of the year, much like the Dow did in 1935.
