(October 11 – 11:20 ET) – Nasdaq is announcing the creation of the Nasdaq-100 Pre-Market Indicator, in an effort to give investors better guidance on the market’s direction before its daily open.
The new indicator will be updated every 60 seconds from 08:30 ET to 09:30 ET. It will be available on www.nasdaq.com, beginning Thursday, October 12. Nasdaq designed the indicator to help investors assess pre-market trends and predict opening prices for the market based on actual pre-market trading data.
The index is calculated based on the last sale prices of Nasdaq-100 stocks in pre-market trading, using the same methodology used for the calculation of the index during regular market hours. For those securities that did not trade in the pre-market, prices from the 16:00 ET close the previous day will be used in the calculation. Until now traders have had to rely on futures trading and individual pre-market trading to see where the market is going.
“We are doing this for investors,” said Pat Campbell, Nasdaq’s chief operating officer. “By providing investors with current, real-time, pre-market data, we helping investors better prepare for the trading day ahead and track their stocks more precisely. We expect that the Pre-Market Indicator will become a closely followed index not only by users of our Web site, but also by investors and financial news organizations that want to get a jump on the market open.”
-IE Staff