A few notes on the recent Nasdaq pattern:
- The Nasdaq futures finished lower for the sixth consecutive day. Since the inception of ND futures in 1996, there have been just three prior occurrences. The next day (6/5/97, 11/14/00, and 4/30/02) ended higher each time.
- Each day this week, the ND100 ended below the prior day's range. The futures finished the next day higher in of 11 of 13 occurrences after four consecutive closes that were below the prior day's low.
- To capture the dynamics of Monday's reversal and subsequent decline, I then qualified the four day ago high was at least a 15 day high with four consecutive lower closes. Again, the results were quite bullish for the next day with 5 of 6 closing higher.
Past performance does not indicate future results but the above notes highlight how far the rubber band has been stretched. If Snapper is to arrive on the scene, the best "tell" may come from the action after the first hour. The six day decline featured one common characteristic: early intraday highs (illustrated below). A new intraday high after the first hour would be a change in character worth noting (for the short-term that is).
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter