NASDAQ Composite (.IXIC) could be in for another huge run in 2020
Stocks kicked off the month of December with a losing streak, but despite the bumpy start — the Dow Jones Industrial Average shed more than 500 points in the first two trading days of the month — 2020 could be another big year for stocks, if history is any guide.
The markets soared heading into the final month of the year, with the S&P 500 gaining over 25% in the first 11 months of 2019. Since 1990, the S&P 500 has gained at least 20% from January through November on six other occasions, and following those years, the U.S. stock market boom continues across all three of the major domestic equity indices.
The S&P 500, Dow and Nasdaq Composite have turned in big years — measured in the December to December annual period — 100% of the time after similar S&P 500 gains through November. The S&P and Nasdaq gains have averaged above 18%, while the Dow has posted an average gain of 15%.
Of course, past performance does not guarantee future results. With the 2020 presidential election on the horizon, this time could be different.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 8,807.75.
The projected lower bound is: 8,449.29.
The projected closing price is: 8,628.52.
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 28 white candles and 22 black candles for a net of 6 white 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 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 77.9859. This is not an overbought or oversold reading. The last signal was a sell 6 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 59.78. 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 6 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 36. This is not a topping or bottoming area. The last signal was a sell 6 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 6 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -5.645 at 8,616.183. Volume was 3% below average (neutral) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,613.91 8,325.91 8,020.13
Volatility: 12 14 18
Volume: 533,744,128 516,619,072 552,253,184
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 is currently 7.4% above its 200-period moving average and is in an upward trend. Volatility is 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 37 periods.