NASDAQ 100 Is Living On The Edge In October

Paban Raj Pandey

The chart and data that follow highlight non-commercial commodity futures trading positions as of October 2, 2018. This data was released with the October 5, 2018 COT Report (Commitment of Traders).

Note that this chart also appeared on my blog.

The chart below looks at non-commercial futures trading positions for Nasdaq 100 futures. For the week, the Nasdaq 100 Index and PowerShares QQQ ETF (NASDAQ: QQQ) both closed down -3.0%.

Here’s a look at Nasdaq 100 futures speculative positioning. Scroll further down for commentary and analysis.

The Nasdaq 100 appears to be losing key support – this should lead to further declines.  (see comments below).

Let’s look at the COT data and technical to see what’s next…

Nasdaq 100 Index Futures: Currently net long 36.2k, down 64.

nasdaq 100 futures chart analysis cot report data longs shorts_october 5

The Nasdaq 100 spent much of September bouncing off the 50 day moving average before rallying into early October. But that rally lost its engine last week, with the tech index falling nearly 3 percent on the week and losing its 50 day moving average in the process. Most of the damage came on Thursday and Friday.

The latest week ending data through last Wednesday (courtesy of ETF.com), saw the QQQ ETF lose over $600 million in flows.

 

Twitter: @hedgopia

Author may hold a position in mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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