NASDAQ Composite (.IXIC) Cautious Note After Trump’s Tariff Threat
European stocks are likely to open on a cautious note Tuesday after U.S. President Donald Trump said he would likely raise the punitive tariffs on $200 billion of Chinese goods.
He also threatened to impose tariffs on all remaining Chinese imports, if upcoming trade talks fail to produce a deal.
Asian markets outside China and Hong Kong shrugged off early weakness to edge higher even as it seems unlikely that the two sides will resolve their trade dispute at this weekend’s G20 meeting.
Gold inched lower and the dollar steadied on global growth pessimism while oil edged lower again, weighed down by record Saudi oil production.
The U.S. economic calendar remains light, with reports on home prices and consumer confidence awaited later in the session.
Overnight, U.S. stocks rebounded after four consecutive sessions of losses as tech shares bounced back and investors cheered robust retail sales figures tied to Cyber Monday.
The Dow Jones Industrial Average rallied 1.5 percent, the tech-heavy Nasdaq Composite advanced 2.1 percent and the S&P 500 added 1.6 percent.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 7,495.58.
The projected upper bound is: 7,421.22.
The projected lower bound is: 6,705.36.
The projected closing price is: 7,063.29.
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 21 white candles and 29 black candles for a net of 8 black 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 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 39.0777. This is not an overbought or oversold reading. The last signal was a buy 1 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 42.68. 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 21 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 -65. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 6 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 142.869 at 7,081.853. Volume was 9% below average (neutral) and Bollinger Bands were 47% wider 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: 7,097.54 7,519.99 7,515.91
Volatility: 32 31 23
Volume: 573,101,312 627,937,728 541,114,368
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.
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 5.8% below its 200-period moving average and is in an downward 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 volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 36 periods.
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