LIVE MARKETS-Even with a running start, Nasdaq composite's hurdles loom large

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EVEN WITH A RUNNING START, NASDAQ COMPOSITE'S HURDLES LOOM LARGE

Both the Nasdaq composite, and one measure of its internal strength, the Nasdaq New High/New Low (NH/NL) index, are setting up to challenge important resistance hurdles on the charts.

Thus, to keep the advance intact, both the composite and the NH/NL index may soon need to make significant leaps.

On Monday, the main U.S. indexes ended mixed. The S&P 500 index .SPX edged higher, while the Dow .DJI finished flat.

The Nasdaq composite .IXIC gained 0.31% to finish at 19,591.24, which was its highest close since February 20. The IXIC has now advanced more than 28% off its April 8 close.

Meanwhile, the Nasdaq New High/New Low index (NH/NL) finished at a six-month high:

The NH/NL index ended at 65.9% which is its highest level since a 66.7% reading on December 12, 2024, just two trading days ahead of the IXIC's record highs.

The measure's recent rise is coming just as the composite has been racing toward the resistance line from its December peak, which now resides around 19,810.

Additionally, on Monday, the IXIC ended down just 2.89% from its 20,173.891 December 16 record close, and down 3.04% from its 20,204.581 December 16 record intraday high.

At the same time, the NH/NL index appears to be setting up for a big test of its own. It's approaching the resistance line from its early 2023 high, which is now around 73.2%.

The measure's highs from February 2023 to December 2024 ranged from 73.5% to 79.2%.

Thus, the composite would appear to be nearing a critical juncture, with traders paying special attention to not just the barriers it faces by itself, but also whether there will continue to be sufficient thrust behind its rise to underpin an even greater advance.

(Terence Gabriel)

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