Nasdaq-100 Pre-Market Indicator


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 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.

BREAKING DOWN '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, 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.

  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. Investing Basics

    The Auction Method: How NYSE Stock Prices are Set

    The New York Stock Exchange (NYSE), sometimes referred to as “the big board,” is the oldest and largest stock exchange in the United States. NYSE is the place investors think of when ...
  2. Investing Basics

    The Closing Cross: How Nasdaq Stock Prices Are Set

    When you hear that your favorite stock closed at a record high price, have you ever considered how that price was reached? The calculation effort is far more complex than you might expect. To ...
  3. Investing Basics

    The Opening Cross: How Nasdaq Stock Prices Are Set

    The National Association of Securities Dealers Automated Quotations, commonly referred to as Nasdaq, is a computerized marketplace where stocks are traded from 9:30am to 4pm Eastern Standard ...
  4. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  5. Trading Strategies

    The Daily Routine Of A Swing Trader

    From pre-market to after hours, see what you need to do to capture gains quickly.
  6. Active Trading Fundamentals

    3 Things Investors Can Learn From Traders

    By incorporating some of the best practices of top traders, investors can greatly improve portfolio returns.
  7. Options & Futures

    What Can Traders Learn From Investors?

    Discover tips from a long-term strategy that can help you make better short-term trades.
  8. Active Trading

    Fundamental Analysis For Traders

    Find out how this method can be applied strategically to increase profit.
  9. Forex Education

    A Trader's Guide To Using Fractals

    This reversal pattern can make sense of the seeming randomness of market movements and improve your trading.
  10. Forex Education

    Lessons From A Trader's Diary

    Discover what this trader learned from his mistakes and how to uncover your own.
  1. When did Facebook go public?

    Facebook, Inc. (NASDAQ: FB) went public with its initial public offering (IPO) on May 18, 2012. With a peak market capitalization ... Read Full Answer >>
  2. How do financial advisors execute trades?

    Today, almost every investor invests through online brokerage accounts. Investors often believe that their trades are directly ... Read Full Answer >>
  3. How do you calculate a reverse split using Excel?

    A reverse stock split is a corporate action a company may take to meet exchange requirements. A reverse split reduces the ... Read Full Answer >>
  4. Why is the Nasdaq more volatile than the NYSE?

    The Nasdaq exchange does tend to regularly evidence more volatility than its major competitor, the New York Stock Exchange ... Read Full Answer >>
  5. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    The primary advantages for a company of listing on the Nasdaq exchange are lower listing fees and lower minimum requirements ... Read Full Answer >>
  6. Why is the Nasdaq more heavily weighted to tech stocks than other stock exchanges?

    The Nasdaq became the world's first electronic stock exchange at its inception in 1971. The exchange's dedication to advancing ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  2. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  3. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  4. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  5. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
  6. Discount Bond

    A bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the ...
Trading Center