Nasdaq composite: Knocking on the door of new highs
U.S. equity index futures red; Dow off ~0.6%
Mortgage market index 214.8 vs 230.2 last week
Euro STOXX 600 index off ~0.3%
Dollar up; gold slips; crude, bitcoin both off ~1.5%
U.S. 10-Year Treasury yield rises to ~4.24%
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NASDAQ COMPOSITE: KNOCKING ON THE DOOR OF NEW HIGHS
Last Friday, the S&P 500 index .SPX and Dow Industrials .DJI scored their most recent record highs. The Nasdaq composite .IXIC, however, has been on the outside.
It's now been 73 trading days (tds) since the IXIC's 18,647.45 July 10 record closing high, and 72 tds since its 18,671.07 July 11 record intraday high.
That said, the composite is now on a five-day win streak. It ended Tuesday at 18,573.13 which puts it down just 0.4% from its record close and down 0.52% from its record intraday high.
However, just as the Nasdaq is knocking on the door of new highs, one measure of the Nasdaq's internal strength, the Nasdaq New High/New Low (NH/NL) index, is once again nearing a key barrier:
The NH/NL index has risen seven straight days and ended Tuesday at 69.1% putting it just shy of the resistance line from its early 2023 high. This line, which resides around 73.5%, has capped the measure's rises so far this year.
Thus, the composite appears to be once again nearing an important juncture.
To add confidence in a more protracted Nasdaq advance, driven by broadening strength, at a minimum, bulls will want to see the NH/NL index finally take out the resistance line.
If the measure struggles to cleanly overwhelm this hurdle, or is once again repulsed by the line, it may signal a return of Nasdaq instability, to some degree, especially if tech titans fail to pick up the slack.
If the NH/NL index breaks its October 11 trough at 52%, pressure on the composite may intensify.
(Terence Gabriel)
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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
AUTOS AND PARTS TO REMAIN UNDER PRESSURE - CLICK HERE
EUROPEAN STOCKS HAVE HIGH TRUMP PREMIUM PRICED IN - BARCLAYS CLICK HERE
EUROPE STRUGGLES FOR DIRECTION, EARNINGS MIXED - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES DIP AFTER RAFT OF EARNINGS - CLICK HERE
ELECTION AND FED JITTERS GRIP MARKETS -CLICK HERE
IXICNHNLIndex10232024 https://tmsnrt.rs/3UjqFKa
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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