NASDAQ Composite (.IXIC) Bull Run Continues

NASDAQ Composite (.IXIC) Bull Run Continues

NASDAQ Composite (.IXIC) Bull Run Continues

Wall Street has been on a bull run since the beginning of 2019. After rebounding in January, U.S. stock markets consolidated in February. The bull-run can be attributed to positive developments on the trade war front, temporary deal between the Republicans and Democrats to avert government shutdown again and the Fed’s dovish monetary stance. 

Consequently, it will be a prudent move to invest in stocks with a favorable Zacks Rank and strong growth potential. 

Wall Street Bull Run Continues

After tumultuous 2018, Wall Street has been recovering in 2019. Year to date, the three major stock indexes – the Dow, S&P 500 and Nasdaq Composite – are up 11%, 10.9% and 12.8%, respectively. Notably, both the Dow and Nasdaq Composite finished in the green in the preceding eight weeks.  Meanwhile, the S&P 500 ended in the green in seven of the last eight weeks. 

On Feb 12, the S&P 500 finished above its 200-days moving average for the first time since Dec 4, 2018. This was a key technical barrier indicating upside potential of the benchmark index in the near term. On Feb 15, Nasdaq Composite exited its longest bear market by one measure since 1991. This represents a significant turnaround of the tech-heavy index from its collapse in the fourth quarter of 2018. 

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 7,183.80.

The projected upper bound is: 7,822.74.

The projected lower bound is: 7,167.43.

The projected closing price is: 7,495.08.

Candlesticks

A black body occurred (because prices closed lower 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 doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 89.5445. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 67.32. 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 37 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 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 33 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 2.303 at 7,489.069. Volume was 11% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
7,490.3087,513.7017,455.2547,489.069 548,580,032

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

Moving Averages: 10-period 50-period 200-period
Close: 7,397.99 7,004.99 7,469.55
Volatility: 12 31 25
Volume: 532,384,192 604,891,392 565,131,136

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 0.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 28 periods.

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