NASDAQ Composite (.IXIC) awaits the quarterly reports from Amazon and Microsoft

NASDAQ Composite (.IXIC) awaits the quarterly reports from Amazon and Microsoft

NASDAQ Composite (.IXIC) awaits the quarterly reports from Amazon and Microsoft

The world’s largest publicly traded company by market cap is scheduled to report on Wednesday, in an event that could significantly sway the Nasdaq 100. Mega-cap companies like Microsoft and Apple have become synonymous with the broader market by some investors – due to their weighting on the index and vast supply chains – and have been known to impact other markets. One such instance was the USDJPY flash crash early this year when Apple revised their quarterly outlook lower.

Evidently, market participants have afforded these companies significant influence which is partially why next week could prove to be a crucial moment for the US stock market. Alongside Microsoft, other tech companies like Amazon, Intel, Snapchat, Twitter and Texas Instruments are due to report. Each will offer insight on their unique corner of the tech industry, but their combined performances will likely decide the overall direction of the stock market’s reaction. If the first week of earnings was any indication, the season could prove to be a bullish catalyst, delivering the spark needed to drive the indices to new highs.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 8,003.13.

The projected upper bound is: 8,360.00.

The projected lower bound is: 7,821.10.

The projected closing price is: 8,090.55.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

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 70.9576. This is not an overbought or oversold reading. The last signal was a sell 0 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 53.60. 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 96 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 72. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -67.310 at 8,089.543. Volume was 1% above average (neutral) and Bollinger Bands were 20% narrower than normal.

Open     High      Low     Close     Volume___
8,149.8508,157.3568,045.3758,089.543 559,752,384
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,025.95 8,000.52 7,795.33
Volatility: 17 22 20
Volume: 469,565,632 530,152,320 558,722,880

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 is currently 3.8% 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 1 periods.

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