Shades of April 4, 2000

After today’s big sell-off and subsequent reversal, I took a quick look at the Nasdaq bubble’s top in 2000 to see if I could find a similar day. Indeed, April 4 2000 showed a similarly illiquid market and trading day, as the Nazzy sold off more than 15% but reversed course and ended the day down much less.

Here is the S&P with today as the last data point:

SPX

And the Nazzy with April 4, 2000 as the last data point:

NDX

And here’s a look at where the Nasdq Composite was a year later:

NDX

I’m not necessarily calling for a crash– they key point to drive home is how illiquid and momo-driven/positive feedback this market environment is.

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2 Responses to Shades of April 4, 2000

  1. Pingback: Shades of April 4, 2000 | Stocks!

  2. Pingback: Revisiting: Shades of April 4, 2000 « Shadow Capitalism

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