NASDAQ Composite (.IXIC) Approaching Record Highs

NASDAQ Composite (.IXIC) Approaching Record Highs

NASDAQ Composite (.IXIC) Approaching Record Highs

The month of September is traditionally notorious in Wall Street for never providing positive returns. However, the first two weeks of the month this year has balanced the investor’s portfolio with negative and positive returns, with ensuing week already in the positive territory.

Will September break the trend this year? While we await the answer, the three major stock market indexes – the Dow 30, S&P 500 and Nasdaq Composite – are at present within the striking distance to achieve their all-time high level. Consequently, investment in stocks which are part of these indexes with a favorable Zacks Rank and strong growth potential will be a prudent move.

The tech-laden Nasdaq Composite is up 15.2% year to date. The index is currently 2.3% away from its record high level of 8,133.30 registered in Aug 30.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,198.22.

The projected lower bound is: 7,870.71.

The projected closing price is: 8,034.46.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 58.9553. This is not an overbought or oversold reading. The last signal was a buy 7 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 57.33. 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 sell 12 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 50. This is not a topping or bottoming area. The last signal was a sell 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 78.194 at 8,028.232. Volume was 6% above average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
7,993.5268,039.0657,986.4058,028.232 534,963,296

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,960.73 7,889.10 7,427.34
Volatility: 13 13 19
Volume: 513,853,344 479,722,272 514,770,432

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.

Summary

NASDAQ COMPOSITE gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 8.1% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 17 periods.

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