NASDAQ Composite (.IXIC) dip on China deal doubts
Wall Street stocks mostly dipped early Monday as fresh skepticism over US-China trade talks weighed on hopes for a near-term resolution to the grinding conflict.
Analysts cited reports that Chinese officials are intent on staking a “phase one” US-China trade deal on the removal of some tariffs, a condition opposed by the Trump administration.
About 35 minutes into trading, the Dow Jones Industrial Average stood at 28,014.10, up less than 0.1 percent.
The broad-based S&P 500 had shed 0.1 percent at 3,116.23, while the tech-rich Nasdaq Composite Index dropped 0.3 percent to 8,518.12.
Major US indices ended last week at all-time highs, due in part to optimism over US-China trade talks. Shifting sentiment on the trade conflict has influenced market moves for more than a year.
This week’s calendar includes housing economic data and minutes from the most recent Federal Reserve meeting, as well as an array of earnings from retailers, including Macy’s and Target.
Among individual companies, beauty products giant Coty jumped 3.7 percent after announcing a deal to pay $600 million for a majority stake in Kylie Jenner’s cosmetics and skincare company.
HP dropped 1.0 percent as it rejected a $33 billion bid from Xerox, saying that it “significantly undervalues” the company but signaling that it was open to a potential deal down the road. Xerox fell 0.6 percent.
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 8,235.87.
The projected upper bound is: 8,743.13.
The projected lower bound is: 8,375.24.
The projected closing price is: 8,559.19.
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 30 white candles and 20 black candles for a net of 10 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 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 86.6671. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 71.61. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 117 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 126.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 26 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 9.109 at 8,549.938. Volume was 2% below average (neutral) and Bollinger Bands were 5% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,475.74 8,179.92 7,933.02
Volatility: 6 15 18
Volume: 533,015,424 530,507,808 552,154,624
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 7.8% 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 22 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.