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Is the NASDAQ Getting Ahead of Itself?

Earlier this morning, the NASDAQ was up over 17% YTD, well ahead of the Dow (down ~3% YTD) and the S&P (up ~2% YTD) . The relative value of the NASDAQ to the S&P 500 is now over 2.0 and has been hovering around 2.0 for the past couple of days. It actually closed a fraction above 2.0 on Friday for the first time since February 2001.

As you can see from the chart below, the only other time in the NASDAQ's history that the ratio was above 2.0 was during the internet bubble. In fact the historical average is 1.51. Since the end of the internet bubble, the average has been 1.72. This of course begs the question, is the NASDAQ too high or does the S&P have more room to climb?

Weighing positively on the NASDAQ 100 today are Research in Motion , Apollo Group , Oracle , Apple and Amazon .

Comments? Send them to bythenumbers@cnbc.com

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