Nasdaq-100 Pre-Market Indicator

AAA

DEFINITION of 'Nasdaq-100 Pre-Market Indicator'

An index of trading activity based on pre-market open prices for the Nasdaq-100. The Nasdaq-100 Pre-Market Indicator (PMI) was developed by nasdaq.com to give traders and investors a big-picture view of market activity based on actual trading data for Nasdaq-100 stocks. The PMI helps investors gauge pre-market trends, based on market reaction to overnight news, and use them to predict opening prices. The PMI uses the same calculation used for the Nasdaq-100 index during regular market hours. It is calculated based on the last sale prices of the Nasdaq-100 stocks during pre-market trading, which takes place from 4 a.m. to 9:30 a.m. EST.

INVESTOPEDIA EXPLAINS 'Nasdaq-100 Pre-Market Indicator'

The Nasdaq-100 comprises the top 100 domestic and international non-financial companies listed on the Nasdaq in terms of market capitalization. Major industry groups on it include computer hardware and software, biotechnology and telecommunications. The Nasdaq-100 includes some of the best-known companies and brands on the planet such as Amazon.com, Apple, Facebook, Gilead Sciences, Google, Intel, Microsoft and Qualcomm.

Despite its heavy technology weighting, the index is widely considered to be a good overall market barometer because of the Nasdaq-100 constituents' importance to the U.S. and global economy. The Nasdaq-100 PMI is therefore useful to investors as a leading market action indicator during regular trading hours. It also helps traders assess the likely opening price for a stock and the extent of market support for that price.

The Nasdaq-100 PMI is calculated using last sale prices during pre-market trading, but if a Nasdaq-100 security does not trade in the pre-market, the calculation uses the previous day’s 4 p.m. close price. The indicator also uses editing logic to filter out bad trades and provide a more accurate reading of market trends.

The Nasdaq-100 PMI, together with the Nasdaq-100 After Hours Indicator (AHI), gives investors and traders valuable insights into extended-hours trading trends.

RELATED TERMS
  1. CBOE Nasdaq Volatility Index - ...

    A measure of market expectations of 30-day volatility for the ...
  2. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  3. Opening Cross

    A method used by the Nasdaq to determine the opening price for ...
  4. Nasdaq SmallCap Market

    The Nasdaq equity market for companies that have relatively small ...
  5. NASDAQ Global Select Market Composite

    A market capitalization-weighted index made up of U.S.-based ...
  6. NASDAQ Global Market Composite

    An index made up of stocks that represent the Nasdaq Global Market. ...
Related Articles
  1. The Auction Method: How NYSE Stock Prices ...
    Investing Basics

    The Auction Method: How NYSE Stock Prices ...

  2. The Closing Cross: How Nasdaq Stock ...
    Investing Basics

    The Closing Cross: How Nasdaq Stock ...

  3. The Opening Cross: How Nasdaq Stock ...
    Investing Basics

    The Opening Cross: How Nasdaq Stock ...

  4. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center