LIVE MARKETS Nasdaq Composite: Can't catch its "breadth"

  • 11/24/2021
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Nov 24 - 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: CAN"T CATCH ITS "BREADTH" (0900 EST/1400 GMT) The Nasdaq Composite (.IXIC) is only down around 1.8% from its Nov. 19 record-high close. That said, measures of internal strength continue to show broad, and intensifying, weakness. read more For example, the Nasdaq daily advance/decline (A/D) line topped on Feb. 9 of this year, before ultimately collapsing to a 9-month low in mid-August: Despite, IXIC new highs since then, including just late last week, this closely watched breadth measure remains well shy of its 2021 highs. Earlier this month, it failed to reclaim its 200-day moving average. So far this year, there have been 39 negative breadth days. That is, the Composite closed higher, but the A/D line fell that day. Of note, around 15% of those days have occurred in just the past 30 days or so, suggesting recent internal tension. Also, of those 39 negative breadth days, 16 of them occurred with the composite registering a record close. Three of them have occurred in November, with the last such day Nov. 19, or what is now the Composite"s 16,057.44 record close. Just looking back to early 2020, periods of A/D-line divergence vs the Composite, as well as nearby clusters of Nasdaq record-high closes/negative breadth days, did precede varying degrees of IXIC instability. Additionally, the A/D line has now fallen seven-straight days and is threatening its August trough. A break below this level will put it at a more than one-year low. Therefore, unless the Nasdaq can quickly catch its "breadth," risk remains for a much deeper decline from the recent peak. read more (Terence Gabriel) ***** FOR WEDNESDAY"S LIVE MARKETS" POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE: read more Terence Gabriel is a Reuters market analyst. The views expressed are his own

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