The NASDAQ continued displaying relative strength verses the S&P 500 overnight, albeit mildly. The composite index was able to make new swing highs during the overnight session where sellers were quick to greet the move.
As we work into the early hours of USA time, prices have balanced out and are slightly higher than last week’s close.
During today’s session, I am interested to see whether or not the lagging S&P breaks recent lows or instead continues consolidating/grinding higher. Put quite simply, I will be monitoring the 1800 price level. Should we sustain trade below 1800 for a prolonged period of time, I may reduce select long exposure.
I do not want to see the NASDAQ (as represented by the /NQ contract) below 3488 for a prolonged period either.
I have highlighted the levels I will be observing on the S&P today on the following market profile chart:
