* U.S. equity index futures ~flat ahead of week's earnings
flood
* U.S. March durable goods up 0.5% vs 2.3% estimate
* Euro STOXX 600 index edges up ~0.1%
* Dollar ~flat; gold slips, crude slides
* U.S. 10-Year Treasury yield ~1.58%
April 26 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com
NASDAQ COMPOSITE: CAN IT MAINTAIN ORBIT? (0900 EDT/1300 GMT)
With Nasdaq's titans expected to release quarterly numbers
this week, the Nasdaq Composite may be at an important
juncture. This after the Composite ended Friday within 1% of its
Feb. 12 record-high weekly close of 14,095.
Meanwhile, one measure of the Nasdaq's internal strength hit
a fresh record high on Friday. Despite this, of some concern,
this measure's momentum is waning:
Indeed, Nasdaq's cumulative net new highs (NNH)
(running sum of new highs - new lows), on a weekly basis,
bottomed in early April 2020, and has been trending up, above
its 12-week moving average (WMA), for 47 straight weeks. The
measure ended Friday at an all-time high of about 175k.
Of note, just looking back over the past 6 years or so,
periods when cumulative weekly NNHs were above its 12-WMA have
coincided with protracted Nasdaq strength. Conversely, periods
when cumulative NNHs were below the 12-WMA have occurred with
Nasdaq instability.
The spread between the measure and its 12-WMA is still
positive. That said, its thrust is waning. The spread peaked on
Feb. 12, or with the Composite's weekly closing high. It has
since contracted nine out of the past 10 weeks.
A weekly down-tick in cumulative NNHs, followed by a break
of its 12-WMA, could suggest that an important bearish trend
change is occurring within the Nasdaq. In that event, gravity
may then prevail.
(Terence Gabriel)
*****
FOR MONDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT
- CLICK HERE:
(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)