NASDAQ Composite (.IXIC) dipped as reports that Washington could impose restrictions on another Chinese technology company

NASDAQ Composite (.IXIC) dipped as reports that Washington could impose restrictions on another Chinese technology company

NASDAQ Composite (.IXIC) dipped as reports that Washington could impose restrictions on another Chinese technology company

U.S. stocks dipped on Wednesday as reports that Washington could impose restrictions on another Chinese technology company further inflamed trade tensions between the world’s two largest economies.

Fears that tit-for-tat tariffs and other retaliatory actionsby the United States and China will hit global growth have keptinvestors on edge, putting the S&P 500 on track to post itsfirst monthly decline since the December selloff.

Media reports on Wednesday said the Trump administration was considering sanctions on video surveillance firm Hikvision, the second major Chinese technology company facing U.S. curbs.

The release of minutes from the Federal Reserve’s latest policy meeting, in which officials agreed that their patient approach to setting monetary policy could remain in place “for some time,” had little impact on Wall Street’s major indexes.

“I don’t think the Fed is a major consideration for themarket right now,” said Robert Phipps, a director at PerStirling Capital Management in Austin. “There are times whengeopolitical factors overwhelm everything else, and we believethis is increasingly one of those times.”

“The Fed meeting took place before the trade deal blew up,”he added.

The Dow Jones Industrial Average .DJI fell 50.18 points,or 0.19%, to 25,827.15, the S&P 500 .SPX lost 2.37 points, or0.08%, to 2,861.99 and the Nasdaq Composite .IXIC dropped11.30 points, or 0.15%, to 7,774.43.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,976.64.

The projected lower bound is: 7,531.44.

The projected closing price is: 7,754.04.

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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 26.5639. This is not an overbought or oversold reading. The last signal was a sell 16 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 42.66. 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 16 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 -64. This is not a topping or bottoming area. The last signal was a buy 1 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 15 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -34.881 at 7,750.843. Volume was 17% below average (neutral) and Bollinger Bands were 28% wider than normal.

Open High Low Close Volume___
7,749.8057,786.3317,738.3537,750.843 466,478,976

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

Moving Averages: 10-period 50-period 200-period
Close: 7,798.45 7,882.83 7,532.77
Volatility: 27 18 26
Volume: 551,631,424 560,675,136 581,945,728

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 2.9% above 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 9 periods.

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