Nasdaq composite: Lagging internal strength remains a red flag
Main U.S. equity index futures modestly red
Mortgage Market Index 212 vs 210.4 last week
Euro STOXX 600 index down ~0.8%
Dollar, crude up; gold dips; bitcoin off ~0.8%
U.S. 10-Year Treasury yield rises to ~4.28%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
NASDAQ COMPOSITE: LAGGING INTERNAL STRENGTH REMAINS A RED FLAG
The Nasdaq composite .IXIC rallied more than 1% on Tuesday to end at 17,717.654. With this, the tech-laden index ended a three-day losing streak, and closed less than 1% below its 17,862.232 June 18 record closing high.
But traders continue to fret over a lack of internal strength. Indeed, breadth has been especially weak. In fact, on Tuesday, the Nasdaq daily Advance/Decline line ended at a fresh record low.
Another measure of internal strength, the Nasdaq New High/New Low (NH/NL) index also remains on the back foot:
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.
More recently, the NH/NL index diverged again. After peaking at 73.3% in early March, it then topped at 68.2% around mid-May.
On Tuesday, this measure finished at 38%, or its lowest level since May 3. It's also spent 20 of the past 21 trading days below its now descending 10-day moving average, which on Tuesday finished at 41.8%.
Thus, traders are on edge as it's an open question as to whether the IXIC can continue to defy the internal weakness.
The NH/NL index has a support line from its October 2023 low which is now around 22% and the April 2024 low was at 17.7%. The support line from early 2020 is now around 6%, and the October 2023 trough was at 4.8%.
If this measure can reverse back above its 10-DMA, and its June 13 high at 45.5%, it may suggest a reprieve as burgeoning internal strength may then add confidence in the sustainability of the composite's rise.
However, the resistance line from early 2021, which now resides around 73%, may remain an especially stiff barrier.
(Terence Gabriel)
*****
FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
IS FRANCE A FACTOR FOR ECB POLICYMAKERS' DOVISHNESS? - CLICK HERE
EUROPEAN STEEL TRAPPED IN QUICKSAND - CLICK HERE
INVESTORS ARE CHEERIER THAN AT THE START OF 2024 - CLICK HERE
INVESTORS ARE CHEERIER THAN AT THE START OF 2024 - CLICK HERE
HERE'S 10 FUN FACTS ABOUT ASIA MARKETS FROM HSBC'S 'FLYING DUTCHMAN' - CLICK HERE
MORE UPSIDE POSSIBLE FOR STOCKS EVEN WITH 'FOMO' POSITIONING - BARCLAYS - CLICK HERE
EUROPEAN STOCKS FLASH GREEN ON NVIDIA-INSPIRED SURGE - CLICK HERE
EUROPE HEADS FOR POSITIVE OPEN AHEAD OF U.S. INFLATION - CLICK HERE
CAUTIOUS MARKETS KEEP TECH ENTHUSIASM IN CHECK - CLICK HERE
IXICNHNLI06262024B https://tmsnrt.rs/4bjo8p8
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
</body></html>
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
