NASDAQ Composite (.IXIC) declines in the technology sector

NASDAQ Composite (.IXIC) declines in the technology sector

NASDAQ Composite (.IXIC) declines in the technology sector

US stock indexes are on track for modest gains Monday as increases for industrial and high-dividend companies make up for declines in the technology sector.

Defense contractors L3 and Harris are sharply higher after announcing a deal to combine. Bank of America is sinking after reporting weak loan growth in the third quarter.

The S&P 500 has fallen for three weeks in a row and is coming off its worst week since late March as investors worry about rising interest rates and trade tensions between the U.S. and China. Trading has settled down somewhat but remains uneven.

The technology companies that have led the market higher in recent years, including some of the world’s most valuable companies, continued to decline. Apple gave up 1.2 percent to $219.37 and chipmaker Nvidia skidded 3.2 percent to $238.57

The S&P 500 index of technology companies has dropped 7.5 percent since setting a record high on Oct. 3, less than two weeks ago.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 7,749.86.

The projected upper bound is: 7,639.85.

The projected lower bound is: 7,206.38.

The projected closing price is: 7,423.12.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 25.8677. This is not an overbought or oversold reading. The last signal was a buy 0 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 30.30. 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 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 -109.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 8 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -66.150 at 7,430.744. Volume was 4% below average (neutral) and Bollinger Bands were 135% wider than normal.

Open High Low Close Volume___
7,473.3277,500.9287,400.0687,430.744 515,722,368

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,684.53 7,895.30 7,505.75
Volatility: 30 18 21
Volume: 644,554,560 546,864,576 529,308,128

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 1.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 7 periods.

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