For US equity traders and investors these are worrying times, as the NQ emini continues to blast its way ever higher, and leaving its sister indices becalmed and lacking direction, with the ES emini a classic example.
Some are born to lead and others to follow, and the NQ emini has once again regained its rightful place as leader of US equity markets, following a period when it has been lagging behind its two sisters.
Published on Aug 23, 2016 Rhino Trading Partners Chief Strategist Michael Block and FNC contributor David Webb on the state of U.S. markets.
As we move to the end of another trading month a feature now building in US equity markets is the apparent disconnect between the three principal indices, and in particular the divergence between the NQ, which appears to be moving South, and the others which are moving North.
As we move towards the end of the first quarter of the new year, it is interesting to consider one of the more subtle changes to the principle US indices that appears to have passed by unnoticed,
For US equity markets, and the YM emini in particular, it is the daily chart which has focused the mind over the last few weeks, and the prospect of whether or not the sustained resistance level that has developed in the 17,850 region would be breached, or whether this would ultimately cap the Santa Claus rally and bring it to a shuddering halt.
We have all heard of the Fosbury flop which revolutionized the sporting world of high jumping, but sadly the same could not be said of Janet yesterday who delivered their equivalent effort of the FED flop.
With the Nikkei having fallen over 2% at the start of a new trading week and month, European and London traders could be forgiven for thinking their respective markets and Globex would simply follow suit.
This Morning’s Trending Stocks
It was another day of solid gains for equity markets yesterday, with the NQ E-mini leading the way higher, and closing with a wide spread up candle ending the session at 4094, just shy of the psychological 4100 price level which was missed by o.25 of a point!
