Some Perspective on the Nasdaq

This is a chart from yesterday's Quick Takes Pro newsletter.

With all the fuss over the Nasdaq reaching an 11-year high I took a look at the monthly chart.Yes, indeed, it is above last year's high and above the 2007 high so I agree with the assessment. But what I don't think is that this is a breakout, at least not a confirmed one.

On a scale this big, such a small move above resistance is still insignificant. It might get significant but right now it is not.

Look closely at the label, too. When the market breached this level for the first time in 1999 it was the start of the bubble.