Alphabet Inc. (NASDAQ:GOOG) closed in bear market territory for the first time since 2011
Alphabet (GOOGL) just closed in bear market territory for the first time since 2011.
The company, which owns Google, ended Monday down more than 20% off its all-time high in July.
It wasn’t the only tech company that plunged. All of the other FAANG stocks — Facebook, Apple, Amazon and Netflix — closed down by about 4% to 6% Monday. The stocks have been hammered in recent weeks as investors ditch tech.
Facebook (FB) stock fell nearly 6% Monday as the company continues to deal with fallout from a New York Times article that detailed the company’s reaction to political scrutiny and its Cambridge Analytica scandal.
Some observers have noted that highly valued tech companies are often hit hard on days when the entire market slumps.
These companies are also vulnerable to the spike in long-term bond yields and signs from the Federal Reserve that it plans to keep hiking short-term rates throughout 2019. That could slow the economy and start to hurt their profit growth, leading some investors to pull out of tech and invest in safer options like banks and utilities.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,084.13.
The projected lower bound is: 950.09.
The projected closing price is: 1,017.11.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 48.1843. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.07. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -123.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -41.490 at 1,020.000. Volume was 11% above average (neutral) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,056.23 1,114.76 1,120.89
Volatility: 40 39 33
Volume: 1,602,738 1,817,024 1,711,974
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 9.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 30 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.