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.
Nervous best describes US equity markets today, and with so many influences now coming to bear, and this nervous tension can only increase over the next few weeks.
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.
Bullish momentum for US equities remained firmly in the ascendency last week as bullish sentiment for the US dollar continues to weaken, and further extending the rally of the turbulent start to the year which saw major buying by the insiders as a result.
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,
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.
The traditional and seasonal Santa Claus rally appears to have come rather early this year, with October’s rally for the NQ Emini (QQQ, quote) recording a sensational month of gains following the equally dramatic events towards the end of August which saw the index correct sharply, before strong stopping volume duly appeared to prevent the market falling further.
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!
