NASDAQ Composite (.IXIC) close mixed; investors play defense after eurozone data highlights global slowdown

NASDAQ Composite (.IXIC) close mixed; investors play defense after eurozone data highlights global slowdown

NASDAQ Composite (.IXIC) close mixed; investors play defense after eurozone data highlights global slowdown

U.S. stocks closed mixed, but largely unchanged Monday after investors weighed downbeat data on eurozone manufacturing activity with news that Chinese officials played down the significance of last week’s cancellation of visits to U.S. farm states.

How did markets perform?

The S&P 500 index SPX, -0.01% fell less than point to close at 2,991.77, while the Dow Jones Industrial Average DJIA, +0.06%  added 14.92 points, or 0.1%, to 26,949.99. The Nasdaq Composite Index COMP, -0.06% retreated 5.21 points, or 0.1% to 8,112.46.

Stocks remain within striking distance of all-time highs, with the S&P 500 1.1% below its all-time closing high of 3,025.86 set on July 26. After Monday’s close, the Dow was off 1.5% from its record close of 27,359.16 set on July 15, while the Nasdaq remained 2.7% away from its all-time settlement high at 8,330.21 from July 26.

What drove the market?

The market’s modest advance Monday was led by real estate and consumer-staples stocks, defensive sectors that tend to outperform during periods of weaker growth. Consumer staples stocks were the best performing in the S&P 500, rising 0.4%, followed by real estate, up 0.2%.

Helping fuel concerns of an economic slowdown were data that indicated manufacturing activity in the eurozone contracted more sharply in September, posting its worst reading in nearly seven years. The flash eurozone manufacturing purchasing managers index (PMI) fell to an 83-month low of 45.6 in September, down from 47 in August. Economists polled by FactSet had forecast a 47.3 reading — a figure of less than 50 indicates activity declined.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,394.69.

The projected lower bound is: 7,824.96.

The projected closing price is: 8,109.83.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 34.1644. This is not an overbought or oversold reading. The last signal was a sell 5 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 53.00. 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 77 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 -22. This is not a topping or bottoming area. The last signal was a sell 6 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 16 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -5.212 at 8,112.462. Volume was 16% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
8,106.4908,135.8148,085.3378,112.462 473,438,240
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,155.50 8,057.24 7,676.09
Volatility: 9 23 23
Volume: 624,186,560 552,391,040 576,223,104

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 5.7% 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 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 11 periods.

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