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Pro Analysis

This frothy market indicator hit a 25-year high, but some analysts aren't worried

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

A technical indicator on the Nasdaq 100 shows that technology is finally catching up with the broader market rally, and some analysts say that means gains can continue.

The 14-day relative strength index, or RSI, for the Nasdaq 100 (NDX) hit 84.79 on Wednesday, its highest since Jan. 9, 1992.

"The trend is probably still higher for the NDX but it's probably not a bad time for it to consolidate some of those gains now," said Sameer Samana, global quantitative strategist at Wells Fargo Investment Institute. But "all of this suggests we are in the early innings of a move higher. "