LIVE MARKETS-Nasdaq Composite: About to pull a muscle?
* U.S equity index futures edge up in premarket trade
* Euro STOXX 600 index ~flat
* Dollar ~flat; gold nominally down; crude up slightly;
bitcoin
falls
* US 10-Year Treasury yield ~1.30%
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NASDAQ COMPOSITE: ABOUT TO PULL A MUSCLE? (0900 EDT/1300
GMT)
The Nasdaq Composite posted a record-high daily and
weekly closes on Friday. And now, Nasdaq 100 e-mini futures
are suggesting further gains at open Monday.
With this, however, the Composite, on a weekly basis, may
not be able to stretch much more above its 200-week moving
average (WMA) before it comes up lame, and stumbles:
In mid-February, the Composite ended Friday 69.9% above its
200-WMA. This was its greatest level of disparity vs this
long-term moving average since September 2000.
Since then, and despite higher IXIC highs, amid a slowing
rate-of-ascent, the disparity has waned. This measure peaked in
mid-April at 62.9% before posting double-highs at a Fibonacci
61.8% in early and later July.
The Composite closed Friday 61.4% above its 200-WMA. With
the moving average poised to potentially rise a little more than
40 points or so this week to around 9,418, a another push to
challenge a 61.8% disparity reading would put the Composite
around 15,238, or just 0.7% above Friday’s 15,129.501 close.
Of note, when the Composite topped on a weekly basis in
late-August 2018, there had been a period of 200-WMA disparity
divergence. Additionally, disparity stalled in early 2020 shy of
its 2018 tops ahead of the February/March IXIC collapse.
Therefore, another disparity down-tick may suggest the Composite
has already stretched about as far as it can for now.
A weekly disparity close above 61.8%, however, may suggest
the Composite can extend again to challenge the 69.9%
mid-February reading. In that event, depending on the speed of
the advance, the IXIC could potentially tack on more than 6%,
while pushing over 16,000.
(Terence Gabriel)
*****
FOR MONDAY’S LIVE MARKETS’ POSTS PRIOR TO 0900 EDT/1300 GMT
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
Read more: https://mcc.exchange/2021/08/29/live-markets-nasdaq-composite-about-to-pull-a-muscle/
Text source: MCC.EXCHANGE
