The Index Fly in the Ointment

01/07/2015 10:00 am EST

Focus: FUTURES

Christopher Terry

Founder and CEO, iMarketsLive

Christopher Terry, of iMarketsLive.com, shares a video in which he highlights two scenarios that could play out over the next week as a result of the Nasdaq divergence pattern that was formed when stocks in the index failed to make new highs.

The S&P, the Dow, and the Russell indices all made new highs in 2014, but the Nasdaq could not follow it to the upside. Going into the all time highs of 2014, the Nasdaq actually put up a lower high called a divergence pattern. The stocks in the Nasdaq failed to keep upside momentum going and shifted the other way, which pulled the overall markets back down a bit.

Although the markets are currently in an overall uptrend until they start to put in lower highs and lower lows on this particular time frame, there are still two scenarios that traders-especially those who trade eMini Futures-should watch for in the near future.

By Christopher Terry, Contributor, iMarketsLive.com

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