LIVE MARKETS Despite Nasdaq's Monday reversal, internals still reeling

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  • U.S. equity index futures red; Nasdaq 100 off ~2%
  • Euro STOXX 600 index rises ~0.77%
  • Dollar, crude rise; gold edges down; bitcoin dips
  • U.S. 10-Year Treasury yield slips to ~1.75%

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DESPITE NASDAQ'S MONDAY REVERSAL, INTERNALS STILL REELING (0900 EST/1400 GMT)

The Nasdaq Composite (.IXIC) staged a stunning reversal on Monday. The tech-heavy index erased a near-5% collapse to close up around 0.7% on the day.

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On the plus side, a number of measures of Nasdaq internal strength may have reached, or be near to, washed-out levels. That said, they still have work to do to prove that they have stabilized.

The Nasdaq McClellan Summation, which is based on advancing and declining issues, improved off its low of the day, but it still closed down for an eighth-straight session, at -5,987. It has yet to break its March 2020 trough, at -6,207, but it remains below its 10-day moving average. read more

The Nasdaq New High/New Low (NH/NL) index ended at 12.6%, or just a tick above its 12.5% December 6, 2021 trough:

IXICNHNL01252022

It now remains to be seen if this is a sufficiently washed-out reading for this measure, but it still has room to fall to reach previous major lows.

Of note, it bottomed on March 23, 2020 with the Nasdaq's pandemic-crash low, at 1.2%. It hit a low of 1.6% just two trading days (tds) after the market's December 24, 2018 trough.

In early 2016, the NH/NL index bottomed on January 21 at 2.4%. It then converged bullishly over the next 15 tds into the Composite's final low.

In 2011, this measure fell to as low as 3.5% on October 4, or one trading day after the Composite's October 3 bottom.

Its lowest reading ever, using Refinitiv data back to mid-1995, occurred during the Financial Crisis. On November 24, 2008, it fell to 0.5%. It established a slightly higher trough at 0.9% with the Nasdaq's major low on March 9, 2009.

Meanwhile, amid heightened volatility, the Nasdaq looks to kick off Tuesday's session on the back foot again. CME e-mini Nasdaq 100 futures are down around 2% in premarket trade. read more

(Terence Gabriel)

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Terence Gabriel is a Reuters market analyst. The views expressed are his own

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