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  • Writer's pictureRusty Vernon

The Nasdaq Composite: August 2003 and August 2023

In May of 2003, the Nasdaq Composite started to rally after a brutal bear market that had started 3 years earlier. In August of that year, just 3 months later, the market started to pull back to the 10-week moving average line only to bounce higher in the following weeks and continue its uptrend.

That was exactly 20 years ago this week.

In a similar way in May of 2023, the Nasdaq started to rally after a very difficult bear market that consumed all of 2022. Now, again, just 3 months later the Nasdaq is pulling back to the 10-week line.

Often, people who did not get involved with a new bull trend will wait until the first pullback to get invested. That may be happening now.

A bounce off the 10-week line will tell us if that is true. A bounce will indicate if this 2023 rally will continue or if we will instead continue lower for a few more weeks.

As always, past performance does not guarantee future results.

Nasdaq composite index from 2003 and 2023

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Rusty Vernon, President and CIO of Vernon Management Group

Charts obtained from MarketSmith

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