NASDAQ Composite (.IXIC) close slightly lower as trade optimism sours

NASDAQ Composite (.IXIC) close slightly lower as trade optimism sours

NASDAQ Composite (.IXIC) close slightly lower as trade optimism sours

U.S. stocks ended slightly lower Thursday as investors grappled with downbeat news in U.S.-China trade relations and drama in Washington over a whistleblower complaint alleging President Donald Trump sought foreign election interference.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, -0.30% lost 79.59 points, or 0.30%, to 26,891.12, while the S&P 500 index SPX, -0.24% lost 7.25 points, or 0.24%, to 2,977.62. The Nasdaq Composite Index COMP, -0.58% retreated 46.72 points, at 8,030.66, a loss of 0.58%.

What’s driving the market?

Stocks pared early losses Thursday after a Bloomberg report, citing a government official, said the U.S. is unlikely to extend a waiver allowing American firms to do business with Chinese telecom giant Huawei Technologies Co., when it is due to expire in November.

The Trump administration put Huawei on a list of entities that U.S. companies are restricted from dealing with, for national security reasons, in May, though it granted a temporary reprieve from some of these restrictions shortly thereafter, and extended the waiver for another 90 days in August.

“Again, today you do have trade playing a significant role in the market,” said Kristina Hooper, chief global market strategist at Invesco, in an interview. “But keep in mind, we have a very accommodative Fed that’s providing some support to stocks.”

The news appeared to deflate hopes for a quick trade deal that grew after Trump told reporters Wednesday that an end to the U.S.-China trade war could happen “sooner than you think” and repeated that China wants “to make a deal very badly.” The Chinese Commerce Ministry confirmed China has made purchases of U.S. soybeans and pork ahead of trade talks due in October.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 8,011.17.

The projected upper bound is: 8,318.79.

The projected lower bound is: 7,736.35.

The projected closing price is: 8,027.57.

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 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 31.1724. 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 47.72. 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 80 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 -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -46.723 at 8,030.661. Volume was 16% below average (neutral) and Bollinger Bands were 36% narrower than normal.

Open     High      Low     Close     Volume___
8,070.1188,072.1137,991.0188,030.661 472,486,624
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,120.83 8,045.95 7,690.71
Volatility: 12 23 23
Volume: 609,260,544 556,301,184 574,537,536

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 4.4% 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 14 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.