NEW YORK (TheStreet) -- High-priced momentum stocks have been leading the Nasdaq Composite higher, while the Dow Industrial Average, S&P 500 and Dow Transports have lagged.
Since its May high, the DJIA is 2.3% lower, even after setting additional all-time highs, the latest of which was 15,709.59 on Sept. 18.
The S&P 500 is 0.5% above its May high with its Sept. 19 all-time high at 1729.86. The Dow Transportation Average is 1.6% above its May high with its Sept. 20 all-time high at 6754.81.
Meanwhile, the Nasdaq set a multiyear high at 3817.98 yesterday vs. this month's risky level at 3830 and quarterly risky level at 4025.
The Russell 2000 set an all-time high at 1087.78 yesterday vs. its annual, monthly and quarterly risky levels at 1089.42, 1092.46 and 1163.21.
It's not surprising that the six momentum stocks -- or stocks that trade higher on strong technical factors, often ignoring fundamentals -- are Nasdaq components.
At the time of my last post covering momentum stocks on Sept. 12, Apple (AAPL) ($487.96) had peaked at my annual pivot at $510.64 on Aug. 19 and appeared to be vulnerable to return to my annual value level at $421.05. This scenario was enhanced by a break below the 200-day simple moving average at $461.49 on Sept. 16 with a day's low of $447.22.
On Sept. 16, I noted that Apple was upgraded to buy from hold according to www.ValueEngine.com, and I reported that the 50-day SMA had crossed above the 200-day SMA, which some technicians call a "golden cross."