Indeks Nasdaq 100
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Comparative Strength Analysis

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Wyckoff's stock selection process always included an analysis of comparative strength. To identify candidates for long positions, he looked for stocks or industries that were outperforming the market, both during trends and within trading ranges. In short positions, he looked for underperformers.
Therefore, he conducted his comparative strength analysis between a stock and the market, or between a stock and others in its industry.

Practical example: NASDAQ100 vs NVDA

5-year:
snapshot

1-year:
snapshot

YTD:
snapshot

July-August 2022:
snapshot

Conclusion: we can use outperforming stocks' charts with higher positive correlation as a leading indicator for Indexes!

Best,

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