Nasdaq 100 Futures Mark A Key Reversal Day

Nasdaq 100 futures marked a key outside reversal (down) day after hitting a new 2023 high overnight. This is NQ's 2nd time in the past week to reach fresh highs in thinner volume during overnight trade. More importantly, it also highlights how crowded technology shares have become on the back of the recent "AI" craze. Further unwinding of overbought conditions could delay upside in NQ futures for the 10-day moving average ahead of the 20-day moving average. Broad based weakness in stocks puts the upside breakout for ES futures on holdand potentially shifting the immediate focus back towards the 50-day MA once again. Interest rates paused their latest impressive ascent higher as stocks continued to fall throughout the day as debt ceiling talks continue to dominate attention. As a result, US 10-year futures pulled back slightly as oversold conditions unwound a bit. Meanwhile, the US dollar continued to grind higher, but failed to curtail commodities as gold and Crude oil crept higher, the latter highlighting a higher low to reopen the 76 region, where a key 61.8% retracement and the 100-day MA lie.