Oct
29

Nasdaq Futures Forming Potential NR10 Day

By on Thursday, October 29th, 2009 at 3:26 pm

Nasdaq futures are in the process of forming a potential ‘Narrow Range 10′ day, meaning today’s range in the smallest of the last ten sessions. That would be a short-term bearish indication coming on a lopsided positive breadth day. Since inception of the Nasdaq futures contract, there have been 17 instances in which an NR10 day coincided with a 2:1+ positive breadth day on the NASDAQ. In 16 out of 17 cases, Nasdaq futures settled below the setup day’s close within the next three days…

Nasdaq Breadth 2:1 Pos, Nasdaq Futures NR10 Day
08/03/09… Nasdaq futures lower close two sessions later
06/04/09… Nasdaq futures lower close two sessions later
10/30/08… Nasdaq futures lower close one session later
10/20/08… Nasdaq futures lower close one session later
08/28/08… Nasdaq futures lower close one session later
08/22/08… Nasdaq futures lower close one session later
11/23/07… Nasdaq futures lower close one session later
01/31/05… Nasdaq futures lower close three sessions later
01/14/05… Nasdaq futures lower close two sessions later
07/29/04… Nasdaq futures lower close three sessions later
05/11/04… Nasdaq futures lower close two sessions later
10/15/02… Nasdaq futures lower close one session later
05/14/02… Nasdaq futures lower close four sessions later
09/28/01… Nasdaq futures lower close one session later
11/24/00… Nasdaq futures lower close one session later
06/02/00… Nasdaq futures lower close two sessions later
04/25/00… Nasdaq futures lower close one session later

For this setup to go into effect, the recent high just made shortly after 3pm ET needs to hold into the close, keeping the intraday range below 29 points.

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Comments, data and trading signals herein are for informational purposes only and are not recommendations to buy or sell. All information presented is believed to be accurate but is not guaranteed.