The NASDAQ 100 Index ($NDX) tracks the 100 largest stocks listed by the Nasdaq Composite Index. It is the most widely traded Exchange Traded Fund (ETF) in the world, with 91 million shares moving each day. The NASDAQ 100 is often treated as an index of “tech stocks” simply because its components are mostly new technology companies.
The NASDAQ Composite Index ($COMPQ) is a market capitalization-weighted index of over 5000 stocks. Because it is weighted by market capitalization, large companies such as Microsoft, Apple, Google, Cisco, Intel, and Amazon dominate the index. With such a large portion of the index dominated by technology stocks, the NASDAQ Composite is more a barometer for the technology sector than the broader market. The name “NASDAQ” is derived from the National Association of Securities Dealers Automated Quotation (System). For more information about the NASDAQ Composite, see the NASDAQ web site.
When the ADX Indicator is selected, SharpCharts plots the Positive Directional Indicator (+DI), Negative Directional Indicator (-DI) and Average Directional Index (ADX). With the black, green and red color scheme on SharpCharts, -DI is the red line that measures the force of the down moves over a set period. The default setting is 14 periods.
Developed by Andrew Cardwell, a negative reversal occurs when RSI forms a higher high and the security forms a lower high. It is a backward bearish divergence. See ChartSchool article on Relative Strength Index (RSI).
The dollar value of a single mutual fund share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.
Market breadth indicators that can be used to identify strength or weakness behind market moves. Net new highs are found by subtracting the number of new lows from the number of new highs and are usually calculated for the NYSE, Nasdaq, and Amex.
New highs refers to the number of stocks recording their highest price level in 52 weeks. New lows are the number of stocks recording their lowest price level in 52 weeks. Lists of stocks making new highs and new lows are available for the NYSE, Nasdaq, and Amex. As an indicator, new highs and new lows are usually shown as moving averages to smooth the results and are often plotted together for easy comparison.
The NYSE Composite Index ($NYA) is an index that measures the market value of all common stocks listed on the NYSE adjusted to account for capitalization changes, new stocks added to the list, and stocks removed from the list. Over 200 years old, the New York Stock Exchange is one of the oldest continuously operating exchanges in the world. It is associated with large-cap, blue chip stocks and is often used as a surrogate for the market as a whole.