Brace for a NASDAQ correction: Strategist

Brace for a NASDAQ correction: Strategist

People nostalgic for the late-1990s are certainly thrilled these days, particularly investors. That's because 1999 feels like it's coming back in full force.

There's the absurd (tech companies with no revenues valued at billions), there's the embarrassing (the Backstreet Boys are on tour again), and then there's the NASDAQ.

(Watch: S&P to hit 1,825 this year: JPMorgan's Tom Lee)

On Friday, the NASDAQ Composite index closed nearly 14 points below 4000. The last time the index touched these levels on an upswing was at the dawn of Y2K. And, we all know how that turned out.

"NASDAQ is full of bubbles," says CNBC contributor Gina Sanchez, founder of Chantico Global. "There are definitely stocks that highly overvalued within the NASDAQ. However, that isn't the case for every single stock in the NASDAQ. Not everyone is a Tesla, a Netflix, a Facebook, or LinkedIn. We've definitely seen some incredible moves as the general view of the world has shifted from value to growth."

While Sanchez is generally bullish on the NASDAQ, CNBC contributor Andrew Busch, editor and publisher of The Busch Update, is more cautious. Busch's concerns come from where the technical indicators are.

"The 200-day moving average is way down at 3506," notes Busch. "Heck, we're still above the 10-day moving average, which is at 3928."

(Read: Advisors: Strike right portfolio balance before the new year)

In the video above, Busch gives one plan for how investors can use those indicators if they're uneasy with the NASDAQ Composite's current valuations. To see Busch's bearish strategy, as well as the reasons why Sanchez is bullish, watch the video above.

More from Talking Numbers:

Soros and other hedge funds love this stock
Buffett bought $3.5 billion worth of this stock
Why higher mortgage rates won't hurt housing: Top economist

Follow us on Twitter: @CNBCNumbers
Like us on Facebook: