Nasdaq-100 Hits 60-Day Moving Average Streak Amid Top Stocks Rally

The Nasdaq 100 has reached a 60-session streak without closing below its 20-day moving average, its second-longest streak since 1985. Top stocks driving the rally include Palantir and Netflix. The Nasdaq 100 has seen significant growth, with the longest streak occurring in early 1999 during the tech bubble.

The Nasdaq 100 has reached a 60-session streak without closing below its 20-day moving average, its second-longest streak since 1985 [1]. This technical indicator, which measures the average price of an asset over a specified period, has been a cause for concern among market analysts. The last time the Nasdaq 100 sustained such momentum was in early 1999, preceding the dot-com bubble burst [1].

The Nasdaq 100, which includes the 100 largest non-financial companies listed on the Nasdaq stock exchange, has seen significant growth, driven by top performers such as Palantir and Netflix. However, the prolonged streak without closing below the 20-day moving average suggests a potential reversal in the market's trajectory [1].

Jonathan Krinsky, chief market technician at BTIG, has warned investors to brace for a "shakeout." He noted that the Nasdaq 100 has now gone 60 trading days without closing below its 20 DMA, the second-longest streak in its history. The longest streak was ended in early 1999 [1]. Krinsky expects that investors could rotate into utilities, citing the Utilities Select Sector SPDR Fund as having "prebreakout potential" that can carry it to the low $90s from around $84 [1].

The current market environment is characterized by record highs for both the S&P 500 and the Nasdaq Composite, despite concerns around the Aug. 1 trade deadline and the Federal Reserve's potential interest rate cuts. Earnings season is also expected to add to individual stock volatility [1].

While the CBOE Volatility Index has been notably quiet all month, greater turbulence could be especially troubling for more risky assets such as the ARK Innovation ETF. The ARKK has rallied more than 12% this month, defying fears of a pullback [1].

Krinsky expects that a shakeout is overdue, with the ARKK moving 38% above its 100 DMA, only exceeded during a brief period in July 2020 [1]. Investors should remain vigilant and prepare for potential market volatility as the Nasdaq 100 continues its streak.

References:
[1] https://www.cnbc.com/2025/07/21/nasdaq-100-momentum-unmatched-since-1999-so-brace-for-a-shakeout-says-btig.html