(New York)

The Nasdaq is behaving very oddly and it should give investors pause. It is very rare for the Nasdaq and the Dow to be this out of sync. A couple days ago the Nasdaq outperformed the DJIA by 3.5%+, something it had not done in 20 years. Some take this as a sign of bullishness, but in reality, historical precedents say that when the Dow and Nasdaq are out of sync it is bad news. In fact, the only other time the two indices were this out of sync was the dotcom bubble.

FINSUM: The bottom line here is that major Nasdaq volatility in excess of Dow moves are not good. That means days like last Friday should be feared rather than celebrated. Stay vigilant.