Futures & Options

Try the Live Monitor for free!
Watch us trade e-minis and
options in real time.

As quoted in TheStreet.com
the day before a significant
gold breakout. Subscribe to
the Live Monitor and trade 
the markets with confidence.

"...Love the monitor. The flashpoints are amazing and have made my futures trading that much more sharp...". Nick.
"I wanted to write and say thanks again for your daily commentary. It continues to be very educational for me, especially as the on-floor market making business, at least here in New York, has gone even more under water, and I have become more and more simply an options trader in the NDX, RUT, and USO." Ralph.
"Your trading and commentary are the most unbiased I read on a consistent basis. I like to keep grounded and your site does just that." Dave 
“Your insight really helps folks like me that are beginning our long journey as a student of the markets. Wish I had not waited until I was 45 with 4 kids! I watch your comments during the day to help reduce the amount of tuition I seem to be paying the market.” Ed.


NDX, a key retrace and the 200 weekly Print E-mail
By Marc Eckelberry   
Friday, 05 February 2010 21:04
thumb_2.5.10_index_ndx_w_--_nasdaq_100_total_return_index_xNDX (Nasdaq 100) is at an interesting inflexion point, after having corrected 10% off the January highs. Friday's decline was swift, but the tech heavy index managed to snap back and get a close, once again, above the critical 1744 level, which represents 23.6% (76.4%) of the 2000/2002 bear market. Right below Friday's lows is the 200 weekly moving average, a battle zone that once breached on a weekly closing basis can produce multi month sell-offs, as in February 2001 and September 2008. On the other hand, rallies above that moving average can last years, as we saw from 2004 to 2007. We made a clear break above in November 2009, now comes the retest. Unlike SPX (S&P 500), NDX has not made a new decade low in 2009. A bullish divergence to some, a new low waiting to happen for others. Time will tell, but NDX more often than not leads the market, so pay attention to what it does in the coming days/weeks. What is particularly interesting is that we are seeing the same confluence we saw in September 2008: 1744 and the 200 weekly. It's a little lower now, at 1701, but close enough on a macro level, especially considering the actual low we made on Friday at 1712. There is a lot at stake in this chart for both bulls and bears. Whoever wins this round going forward could keep control for some time to come.
 

FOLLOW OUR E-MINI FUTURES TRADES ON THE LIVE MONITOR

Let experienced futures and options traders guide you throughout the day with real-time signals and precise entries and exits. Instant intermarket analysis and turning points updated throughout the trading day. Sign up for your free trial to the Live Monitor today!

live_monitor2

Futures Quotes (delayed)

Starting...