Despite its stumble to start the current trading week, the Nasdaq Composite (NASDAQINDEX: ^IXIC) is up 12% from the low point it reached near the end of last year, and it reached a four-month high on Friday. This is the best stretch we've seen from the index since 2021, before the recent bear market took shape.

If this is the shape of things to come, that bear market may well be ending.

Before jumping to such a conclusion though, be aware that the underlying support for this rally is extremely lopsided. Specifically, it's top-heavy. A trio of large caps (mega caps, actually) -- Tesla (NASDAQ: TSLA), Nvidia (NASDAQ: NVDA), and Facebook parent Meta Platforms (NASDAQ: META) -- are doing the vast majority of the heavy lifting. While you would typically expect to see powerhouse stocks resume their leadership of a struggling market when it's ready to recover, this isn't quite how you want to see it happen.

Continue reading

Source Fool.com