The Nasdaq Composite ($COMPX) ended the session higher by 21.48 points, or 0.83%, on Friday and it closed at 2,599.45. The top index components in the Nasdaq-100 ($NDX) were Fossil Inc. (FOSL) (+3.58%), Expedia Inc. (EXPE) (+3.05%), and Applied Materials (AMAT) (+2.75%). The weakest were CTrip (CTRP) (-2.85%), Netflix (NFLX) (-1.65%), and Marvell Tech. (-1.19%).
Nasdaq Composite (Figure 3)
This shortened trading week will be even lighter than last with volume not returning in full force until the new year. There is very little on the docket data-wise to stir things up. Today brings with it the Case-Shiller 20-city Home Price Index for October and December's Consumer Confidence report. Also out this week are the National Realtors' pending-home-sales report on Thursday and the Chicago Purchasing Managers Index report for December on Friday.
The market is currently dealing with resistance from the earlier highs this year and a slow-down in momentum as that level approached has put a damper on last week's rally. It will make it more difficult to push sharply to higher highs out of the daily trading range that the market has been stuck in over the past several months, but the market will be hesitant to give up its meager gains. The market does tend to hold support and resistance levels and technical patterns extremely well when volume is on the light side, and while the session ahead of a holiday is pretty tame, market moves are often amplified in light-volume trade.
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.