KEY POINTS:

• Main U.S. equity index futures rise slightly
• Euro STOXX 600 index up ~0.4%
• Dollar slips; gold edges up; crude, bitcoin both down >1%
• U.S. 10-Year Treasury yield edges down to ~4.32%

NASDAQ COMPOSITE: JUST A HOP, SKIP AND JUMP FROM NEW HIGH

The Dow Jones Industrial Average DJI and the S&P 500 index SPX both made fresh record highs on an intraday and closing basis on Thursday.

The Nasdaq Composite IXIC has yet to surpass its 2021 peaks, but the tech-laden index did end Thursday easily within striking distance of its record close.

That said, a Nasdaq breadth measure remains on the back foot:

The IXIC finished Thursday at 16,041.62 – less than 16 points, or ~0.1%, from its 16,057.44 November 19, 2021 record close. The Composite closed about 1.1% below its 16,212.23 November 22, 2021 record intraday high.

On Friday morning, e-mini Nasdaq 100 futures NQ1! are just slightly green so the Composite may be somewhat indecisive at the open.

Meanwhile, despite the IXIC’s near-return to its record highs, a Nasdaq breadth measure remains beleaguered. The Nasdaq daily Advance/Decline line (.AD.IXIC) is just slightly above its late-October 2023 record low.

It is, however, once again, bumping up against trendline resistance from its early-November 2021 high.

To add confidence in the sustainability of any new IXIC highs, bulls want to see the A/D line breakout above the resistance line, and at least get in-gear with the Composite to the upside.

The A/D line’s mid-summer 2023 failure at the resistance line preceded a sharp correction in the Composite of as much as 13% into its late-October trough, and led to fresh lows in the breadth measure.

The late-December 2023 A/D line failure at the resistance line preceded a more than 4% IXIC slide into early 2024.

Thus, the IXIC would appear to be at, or near, a critical juncture as both it, and the A/D line, bump up against significant barriers.