NASDAQ COMPOSITE: TAPPING THE THERMOSTAT?
The Nasdaq composite 
IXIC dipped slightly on Thursday to finish at 20,020.35. With this it ended a three-day win streak, and finished down 0.76% from its 20,173.89 December 16 record closing high and down 0.91% from its 20,204.58 December 16 record intraday high.
Traders are eyeing the Nasdaq New High/New Low (NH/NL) index, a measure of the Nasdaq’s internal strength, as after boiling over at resistance earlier this month, it has now cooled down substantially, and fallen to support:
On December 6, the NH/NL index hit 73.5%. With this, it finished essentially right on the resistance line from its early 2023 high. This line, which now resides around 73%, had capped the measure’s strength so far this year.
The NH/NL index then turned down, and has fallen 13-straight trading days. Over this period, the composite has gyrated, including a sharp 5%+ four-day slide from its record highs.
Now, just as the composite has clawed its way back up to challenge those highs, the NH/NL index, which ended Thursday at 34.9%, has reached the support line from its early-November 2023 trough.
Thus, bulls will now want to see this measure vault off the support line, and heat up again. This could add confidence in a renewed, and broad-based, Nasdaq advance.
The NH/NL index’s 10-day moving average, which ended Thursday at 49.1%, and is descending around 3.5 percentage points per day, is an initial hurdle.
If the measure is unable to stabilize, Nasdaq instability may intensify again, especially if tech titans are not able to pick up the slack.
The measure’s August trough was at 27.1% and its April low was at 17.7%. The November 2023 low was at 4.8%.
(Terence Gabriel)
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As the temperature drops, many traders are turning their attention to the thermostat – but not the one in their homes. The stock market has been heating up, with many investors looking to tap into potential opportunities.
With the Federal Reserve signaling a potential interest rate hike in the near future, market volatility is on the rise. This has led many traders to adjust their strategies and tap into various sectors that may benefit from the changing economic landscape.
From energy stocks to consumer goods, there are plenty of options for traders looking to capitalize on market fluctuations. By keeping a close eye on the news and staying informed about market trends, traders can position themselves for success in this ever-changing environment.
So, are you ready to tap into the thermostat and make some strategic moves in the market? Stay tuned to TradingView News for the latest updates and analysis to help guide your trading decisions.
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