NASDAQ Composite (.IXIC) Could be a Volatile Week

NASDAQ Composite (.IXIC) Could be a Volatile Week

NASDAQ Composite (.IXIC) Could be a Volatile Week 

The NASDAQ Composite has pushed on to nearly new highs for the year, the S&P and the Dow are still straddling the middle of a six-month range. This is because of the pessimistic view by some due to interest rate uncertainty trade negotiation uncertainty. Optimistic investors, on the other hand, seem to be dealing with the same issues a little differently by taking it one day at a time.

Stock investors face a mountain of information this week highlighted with May’s inflation report Tuesday, a rate decision from the U.S. Federal Reserve Wednesday, and retail sales Thursday.

The Consumer Price Index is expected to show a monthly increase of 0.2%. Core CPI is expected to rise 0.1%. Producer inflation is expected to jump 0.3%, up from April’s 0.1% rise. These reports are not expected to change the outcome of the Fed’s rate decision on Wednesday. The central bank is widely expected to raise its benchmark rate 25 basis points.

Retail Sales are expected to come in at 0.4%, up from 0.3%. Core Retail Sales are expected to rise 0.3%, matching the previous gain.

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 7,344.97.

The projected upper bound is: 7,869.36.

The projected lower bound is: 7,449.51.

The projected closing price is: 7,659.44.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 80.7702. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 68.17. 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 1 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 88. This is not a topping or bottoming area. The last signal was a sell 0 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 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 10.441 at 7,645.511. Volume was 11% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
7,607.7357,653.5757,595.1447,645.511 467,612,896

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,550.35 7,261.28 6,985.11
Volatility: 12 19 18
Volume: 508,531,904 489,647,872 496,411,296

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 9.5% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 24 periods.

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