The Nasdaq Composite ($COMPX) ended the session lower by 21.53 points, or 0.8%, on Monday and it closed at 2,657.22. The top index components in the Nasdaq-100 ($NDX) were Alexion Pharmaceuticals (ALXN) (+3.98%), Qualcomm (QCOM) (+0.85%), and Baidu (BIDU) (+0.81%). Ctrip.com (CTRP) was the weakest with a loss of 12.26%. Other top decliners included Vertex Pharmaceuticals (VRTX) (-4.33%) and Green Mountain Coffee Roasters (GMCR) (-3.59%).
Nasdaq Composite (Figure 3)
The market is still struggling to break free of an extended daily trading range that began at the end of last month. The current momentum bias favors a breakdown out of the trading range and further weakness this morning would increase that probability even further, although the range itself is unlikely to break today. Instead, continue to expect last week's highs and lows to hold as major intraday support and resistance levels.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.