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Bubble Warnings Get Louder With Nasdaq Erasing Huge Monday Rally

  • Ned Davis sees price, volume charts showing excessive optimism
  • Yet others say rally justified by Fed, business fundamentals
Photographer: Michael Nagle/Bloomberg

Just three days after the Nasdaq 100’s biggest rally since April, those gains are history, and warnings are getting louder that tech stocks are in a bubble.

Fifty-year Wall Street veteran Ned Davis added his venerable voice to the chorus of worriers, citing the speed of the index’s advance -- before today -- and surging share volume. The Nasdaq 100 was down 2.8% Thursday, wiping out its gain for the week.