Nasdaq Kicks off the New Year in a Tight Range

Nasdaq futures holding to a tight 9 point range in regular trading hours. Should the intraday range remain below 10.25, the Nasdaq will post an NR10 session (narrowest range of last ten sessions). When an NR10 coincides with a 2:1 positive breadth session, it’s usually a short-term negative indication (breadth currently running 3:1 positive on the NASDAQ exchange). Out of 17 occurrences of this pattern since inception of the Nasdaq futures contract, all but one led to a subsequently lower NDX close (below the setup day’s close) within the next three days…

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

Categories : Archived Intraday Commentary, Intraday Commentary

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