How is the Nasdaq 100 performing relative to that other global currency — gold?
To answer that question, today’s chart illustrates the Nasdaq 100 to Gold Ratio.
Today’s chart illustrates that the Nasdaq 100 (priced in gold) has pulled back from its recent 20-year highs.
It’s worth noting that the Nasdaq 100 to Gold Ratio has broken below support of its upward sloping trend channel.
What is the Nasdaq 100 to Gold Ratio?
The Nasdaq 100 to Gold Ratio simply indicates the number of ounces of gold it would take to “buy the Nasdaq 100.”
How do you calculate the Nasdaq 100 to Gold Ratio?
To calculate the Nasdaq 100 to Gold Ratio, take the price of the Nasdaq 100 and divided it by the price of one ounce of gold.
What was the highest Nasdaq 100 to Gold Ratio?
Since 1986, the highest Nasdaq 100 to Gold Ratio was 15.9 in March 2000.
What was the lowest Nasdaq 100 to Gold Ratio?
Since 1986, the lowest Nasdaq 100 to Gold Ratio was 0.28 in November 1987 — just after a major stock market crash.