LIVE MARKETS Broader Nasdaq: Due for more than a few-day bounce?

  • 12/27/2021
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U.S. equity index futures modestly higher Premarket strength in tech; weakness in energy Euro STOXX 600 index up ~0.5% Dollar edges up; gold ~flat; crude falls, bitcoin rises U.S. 10-Year Treasury yield ~flat at 1.49% Dec 27 - 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 BROADER NASDAQ: DUE FOR MORE THAN A FEW-DAY BOUNCE? (0900 EST/1400 GMT) The Nasdaq Composite (.IXIC) gained more than 3% last week. read more With this, one measure of internal strength, the Nasdaq McClellan Summation (McSum), which is based on advancing and declining issues, posted back-to-back up days on Wednesday and Thursday for the first time in more than a month read more : IXIC12272021 IXIC12272021 The McSum ended last Tuesday at -5,106, which was its lowest level since early-April 2020. The question now is - whether this measure became sufficiently washed out that the broader Nasdaq can go the other way, and see a period of sustained strength. Even with its sudden rise, the McSum still needs to reclaim its descending 10-day moving average (DMA), but there certainly is room for it to rise before it would meet the resistance line from its early-2021 peak, or its June/November highs. That said, a break of last Tuesday"s low would suggest its downtrend was resuming. Its December-2018/March-2020 lows were in the -5,425/-6,207 area. A decline to the late-2008 trough/support line from 2012 would call for the -6,896/-7,100 area. The support line from 2012 contained the 2018 and 2020 weakness. Meanwhile, another measure, the Nasdaq New High/New Low (NH/NL) index has fallen back below its 10-DMA. However, at 19.8%, it remains above its early-December trough at 12.5%, which was also its lowest level since early-April 2020. read more In any event, CME e-mini Nasdaq 100 futures are quoted up around 0.5% ahead of the open, and on track to rise for a fourth-straight day. read more (Terence Gabriel) ***** LIVE MARKETS EUROPE TO RETURN ON DECEMBER 29: read more

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