NASDAQ Composite (.IXIC) closed at record despite mixed earnings and economic data and antitrust probes into leading U.S. technology stocks

NASDAQ Composite (.IXIC) closed at record despite mixed earnings and economic data and antitrust probes into leading U.S. technology stocks

NASDAQ Composite (.IXIC) closed at record despite mixed earnings and economic data and antitrust probes into leading U.S. technology stocks

The S&P 500 and Nasdaq stock indexes closed at record on Wednesday despite mixed earnings and economic data and antitrust probes into leading U.S. technology stocks.

But the Dow ended lower after disappointing earnings from Boeing and Caterpillar.

How are the major benchmarks faring?

The Dow Jones Industrial Average DJIA, -0.29% fell 79.22 points or 0.3% to 27,269.97, but the S&P 500 index SPX, +0.47% gained 14.09 points or 0.5% to an all-time closing high at 3,019.56, the benchmark also set an intraday peak at 3,019.56. The Nasdaq Composite Index COMP, +0.85% closed up 70.10 points or 0.9% to a fresh high also at 8,321.50, with that tech-heavy gauge setting an intraday record at 8,321.50.

Year-to-date the S&P 500 index is now up 20.45% while the Nasdaq Composite is up 25.41%.

The Russell 2000 RUT, +1.64% an index of small-capitalization stocks, rose 1.64% to 1,580.42 and is now up 17.19% for the year.

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 7,953.97.

The projected upper bound is: 8,541.73.

The projected lower bound is: 8,128.25.

The projected closing price is: 8,334.99.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 86.8362. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 67.04. 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 35 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 167.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 sell 4 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 70.097 at 8,321.500. Volume was 4% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open     High      Low     Close     Volume___
8,227.3618,321.8108,226.5058,321.500 528,508,576
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,223.71 7,913.44 7,529.46
Volatility: 10 17 26
Volume: 490,425,696 559,227,136 588,881,920

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 10.5% 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 26 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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