Chart of the Day - Thursday, May 18, 2023

Today’s Chart of the Day was shared by Nautilus Research (@NautilusCap). The Nasdaq 100 registered its first 52-week high in over a year today. The table shows the prior instances over the past four decades and the forward returns for the Nasdaq and S&P 500. It's rare for the Nasdaq to go a year without a new 52-week high, so the sample size is small, but the returns are strong. Both indices have always been higher 3, 6, and 12 months later. Of course, there's no guarantee that history will repeat itself, but it would be hard to argue that this is bearish.