Nasdaq 100 on pace for best January since 1999

The Nasdaq 100 Stock Index is on pace for its best January since 1999 despite warning signs from the likes of Microsoft Corp. and Intel Corp. and another expected interest-rate hike from the Federal Reserve. The Cboe Volatility Index sank within striking distance of a 10-month low on Friday, signalling less angst in the market. Meanwhile, options trading on megacaps last week showed demand hasn’t jumped for protection against a selloff.

(live chart)

Nasdaq-100 displays bubble-era strength in a bear market

As U.S. stocks entered a bear market, a trend since the start of the preceding bull market gained momentum: Nasdaq’s biggest companies beating the S&P 500 Index. The Nasdaq-100 Index rose Monday to its highest level relative to the S&P 500 since March 2000, according to data compiled by Bloomberg. The ratio climbed 9.1% from Feb. 19 through Wednesday, a period in which the S&P 500 tumbled 34% from a record. Relative strength in the Nasdaq-100 “tells us that we probably aren't out of the woods yet," Jonathan Krinsky, chief market technician at Bay Crest Partners LLC, wrote Sunday in a report.