NASDAQ Composite (.IXIC) chips and other techs staged a broad rally
Chips and other techs staged a broad rally in today’s stock market, boosting the Nasdaq composite to a more than 1% gain with an hour left to go.
The Nasdaq surged 1.3%, the S&P 500 rallied 1% and the Dow Jones Industrial Average advanced 0.7%. Small caps fared well, too, as the Russell 2000 rose 1.3%. Volume was tracking lower on both the NYSE and Nasdaq vs. the same time on Monday.
Apple (AAPL), up 2.3%, was the biggest winner on the Dow Jones index. The stock triggered the 7%-8% loss sell rule Monday, after falling nearly 9% from a 197.79 handle buy point. It’s traded below its 50-day and 200-day moving average lines the past week.
Intel (INTC) bounced 2% and was on track to halt a three-session loss. Shares have slumped 25% below a mid-April peak. Intel and Apple also helped boost the Nasdaq composite.
Chips, energy and computer-related stocks led the upside among industry group gainers. Defensive groups including food and gold miners saw small losses.
Chip stocks have come under severe pressure the past few weeks as U.S.-China trade war fears have intensified. They were among the market’s biggest losers Monday after the Trump administration blocked the sale of key components to China’s Huawei. But on Tuesday, the administration eased some of those restrictions, spurring gains in the stocks.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 8,012.62.
The projected lower bound is: 7,567.94.
The projected closing price is: 7,790.28.
A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 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 6 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 38.4311. This is not an overbought or oversold reading. The last signal was a sell 15 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 44.29. 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 15 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 -61. 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 14 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 83.349 at 7,785.724. Volume was 11% below average (neutral) and Bollinger Bands were 25% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,817.69 7,879.63 7,533.08
Volatility: 27 18 25
Volume: 560,809,408 562,215,168 582,000,128
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 3.4% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 8 periods.
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