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- U.S. equity index futures mixed, little changed
- U.S. June import prices < est; export prices < est
- Euro STOXX 600 index up ~0.2%
- Dollar up slightly; gold, crude, bitcoin slip
- U.S. 10-Year Treasury yield edges up to ~3.79%
NASDAQ COMPOSITE: BUILDING BREADTH (0900 EDT/1300 GMT) The Nasdaq Composite’s recovery off its October 2022 troughis growing more significant. Meanwhile, Nasdaq breadth, which has been an on-goingconcern, is showing signs of improvement: The Nasdaq Composite IXIC ended Thursday at 14,138.57, orits highest level since April 5, 2022. With this, the tech-laden index scored its second-straightclose above the 61.8% Fibonacci retracement of its November2021-October 2022 decline at 13,873.09.
On Thursday, the IXIC hit a high of 14,163.81, at whichpoint it was just shy of closing its April 6, 2022 gap, whichrequires 14,169.12 for a fill. Additional hurdles include the March 29, 2022 high at14,646.90 and the 76.4%-78.6% Fibonacci retracement zone of theNovember 2021-October 2022 decline in the 14,767-14,901 area. These levels are around 3.6%-5.4% above Thursday’s close.
Traders will now look for the 61.8% retracement level, at13,873, to attempt to act as support. Of note, the Nasdaq daily Advance/Decline (A/D) line QQSHF, which is above its 50-day moving average (DMA), endedThursday at a three-month high, and is now just shy of its200-DMA. The A/D line briefly reclaimed its 200-DMA earlier in theyear.
However, the long-term moving average was unable to tickup during this period, while the 50-DMA remained below it. The A/D line’s 50-DMA crossed under the 200-DMA on August24, 2021 and has been below it for 474-straight trading days. Thus, bulls not only want to see the A/D line stay in gearwith the IXIC to the upside, but also ultimately see the 50-DMAcross above the 200-DMA to add confidence in a change in thebreadth measure’s longer-term trend.
