NASDAQ is one of the largest indices in the world. It is composed of 100 of the biggest technology companies in the world. Its biggest components include companies like Apple, Alibaba, Microsoft, Facebook, Google, and Netflix among others.
Last year, the index was among the best performing in the world. Investors were attracted to the index because of its high growth companies that are disrupting all aspects of global business. For example, Google and Facebook are the biggest advertisers today while Netflix is the biggest entertainment company in the world. During the year, it moved up by more than 30%.
This year however, the index has underperformed. It has moved up by less than 3%. The sluggish growth has been attributed to the ongoing risks in the market, including the issue of trade and the fear of accelerated inflation. It reached a low of $6640 on February and started a slow rally, reaching a high of $7627 in March. It then started to fall, reaching a low of $6,803.
This week, the index could continue performing well as investors wait for the quarterly earnings. Yesterday, Netflix announced results that excited the market. It reported an EPS of $0.64 compared to the estimated $0.64 with revenues of $3.7 billion. It added 2 million more subscribers than what analysts were expecting.
The index is currently in the third phase of the Elliot Wave. This means that it could continue moving as high as its YTD high of $7627.