LIVE MARKETS Nasdaq Composite: Stoking the furnace?

  • 12/13/2021
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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: STOKING THE FURNACE? (0900 EST/1400 GMT) Despite less than stellar breadth readings on Friday along with the S&P 500"s (.SPX) fresh record-high close read more , the Nasdaq New High/New Low (NH/NL) index, has made a constructive turn: This measure of internal strength may have become sufficiently washed out with the Nasdaq"s (.IXIC) recent weakness. After falling to 12.5% on December 6 read more , which was its lowest reading since early-April 2020, the NH/NL index has now risen four-straight days. In so doing, this measure ended Friday at 21.1% which put it above its descending 10-day moving average, at 19.5%, for the first time since November 12. read more It now remains to be seen if last week"s sharp NH/NL index upturn from especially depressed levels will lead to the broader Nasdaq re-heating, and therefore, fuel a more sustained IXIC rise. Indeed, there certainly is room for the NH/NL index to rise before it will encounter resistance lines from its highs earlier this year. The measure"s early November peak was at 75.7%. Of note, current readings on the NYSE show a similar picture as the Nasdaq. After also falling to its lowest level since early-April 2020, the NYSE"s measure also ended Friday above its 10-DMA. A Nasdaq NH/NL index violation of its Dec. 6 low can open the door for a test of its March 2020 trough at 1.2%, something which could put the IXIC on ice. (Terence Gabriel) ***** FOR MONDAY"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 Our Standards: The Thomson Reuters Trust Principles.

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