Market: $NQ_F and $ES_F
Chart Analysis: As U.S. index averages come off its biggest weekly losses in months, we examine a multi-market comparison of Nasdaq Emini futures ($NQ_F) reflected in blue vs. the Emini S&P futures ($ES_F) reflected in green with NinjaTrader’s Chart of the Day powered by Kinetick’s free end of day historical data. Last week’s biggest loser was the Nasdaq index after leading Nasdaq stocks such as $AAPL witnessed over a $70 drop in stock price during intraweek trading. The losses reflected in the Nasdaq market has begun to create some distance between it and the other leading U.S. indexes. When taking a look at these two markets side by side, traders can analyse the data for market opportunities in a variety of ways. The questions that traders should be asking range from… are the NQ poised to lead the markets into a bearish rally? Will the ES continue its bullish trend as investors gravitate away from tech stocks into other markets? An interesting study found on the NinjaTrader support forum is the spread indicator displayed in purple below. Historically, over the course of 2012, the NQ and ES markets have been rallying side by side like 2 singers in harmony. However, with the spread indicator value at its lowest levels of the year, perhaps these two markets are changing to more of a duelling banjos type of tune. The next few weeks will be interesting to see which market will lead and which will follow to determine the next potential move in price action and trend.
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