Nasdaq Composite: Flying on fumes?
Main U.S. equity index futures mixed, changes modest
Jun NY Fed Manufacturing index -6 vs -9 estimate
Euro STOXX 600 index off ~0.1%
Dollar ~flat; crude up; gold dips; bitcoin down >1%
U.S. 10-Year Treasury yield rises to ~4.27%
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NASDAQ COMPOSITE: FLYING ON FUMES?
The Nasdaq composite .IXIC has now seen five-straight record closing highs which is its longest such streak since an eight-day run of record closing highs from October 28 to November 8, 2021.
In any event, traders are on edge, as despite the run of record highs, one measure of the Nasdaq's internal strength is showing a glaring divergence:
Indeed, on May 12, the Nasdaq New High/New Low (NH/NL) index topped at 68.2%. With this, this measure once again stalled just shy of a resistance line from its early-2021 peak.
The NH/NL index has since deteriorated, and ended Friday at 43.2%.
Of note, just looking back over the past year or so, this measure diverged ahead of the Nasdaq's two biggest sell-offs, which began in July 2023 and March 2024.
The NH/NL index ended Friday just below its descending 10-day moving average, which finished at 44.4%.
If the measure breaks its 41.1% June 11 low, it may become even more difficult for the IXIC to defy the internal weakness. The measure has a support line from its October 2023 low, which is now around 20%. The April 2024 low was at 17.7%, while the October 2023 trough was at 4.8%.
If the measure can reverse back above its 10-DMA, and its June 13 high at 45.5%, it may suggest a reprieve.
However, the resistance line from early 2021, which now resides around 73%, may remain an especially stiff barrier.
(Terence Gabriel)
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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:
OOH LA LA! LONDON STOCKS SNAP AT PARIS' HEELS - CLICK HERE
US MARKETS TO BENEFIT FROM FRENCH POLITICAL STRESS - CLICK HERE
THAT BUY-THE-DIP TEMPTATION - CLICK HERE
WAITING FOR BARDELLA’S MANIFESTO - CLICK HERE
STOXX AT THE OPEN: BOUNCING BACK - CLICK HERE
EUROPE'S FUTURES INCH UP AFTER FRENCH BATTERING - CLICK HERE
CHINA FAILS TO CHEER, AS FRANCE SCORES OWN - CLICK HERE
NasdaqNHNLindex06172024 https://tmsnrt.rs/3VuE0Pw
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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