‘Second month’ Nasdaq futures compressed yesterday and that signal ‘broke’ downward early today, meaning that a new bout of weakness has now begun:
We pointed out in the April 13th edition that the ‘up-leg’ currently in progress in equity markets would end imminently and that all stock markets were on ‘thin ice’. They still are.
In the April 6th edition, we pointed out that stocks had begun that rally into mid-April by pushing up from a prior compression. A version of that is shown as the first compression in the chart above. Regular readers will know that old compressions provide support when re-visited from above and the support that we identified in that April 6th edition is still ‘in date’. It lies in that day’s range which was between 12984 and 12776 in the front month (June) Nasdaq futures, as we already wrote then. It may not hold, of course, but if seen soon, it should provoke at least a bounce and possibly a resumption of strength for a short while. Trade accordingly.
All signals provide by software developed by our friends at Parallax Financial Research www.pfr.com
