NASDAQ Composite (.IXIC) dips after early end to Trump-Kim summit, bleak earnings

NASDAQ Composite (.IXIC) dips after early end to Trump-Kim summit, bleak earnings

NASDAQ Composite (.IXIC) dips after early end to Trump-Kim summit, bleak earnings

U.S. stocks slipped on Thursday as a U.S.-North Korea summit ended abruptly without an agreement, with a clutch of weak earnings adding to the downbeat sentiment.

President Donald Trump said he had walked away from a nuclear deal at his summit with Kim Jong Un in Vietnam because of unacceptable demands from the North Korean leader to lift U.S.-led sanctions.

“But the biggest factor is that we’ve had a sharp rise since the Christmas Eve lows. A lot of people are just nervous that we’ve come too far too fast.”

The S&P 500 index is set to record its third straight day of losses, after being boosted in the recent weeks by optimism around trade and dovish signals from the Federal Reserve. The benchmark index is about 5 percent away from its September record closing high.

Bleak earnings reports added to the gloom, with HP Inc sinking 16 percent, weighing the most on the technology sector, down 0.25 percent. The company’s revenue fell short of analysts’ estimates.

Booking Holdings Inc fell 8.78 percent after the company missed quarterly earnings expectations and was among the biggest drags on the S&P 500 and the Nasdaq Composite.

At 11:31 a.m. ET, the Dow Jones Industrial Average was down 21.16 points, or 0.08 percent, at 25,964.00. The S&P 500 was down 2.81 points, or 0.10 percent, at 2,789.57 and the Nasdaq Composite was down 11.89 points, or 0.16 percent, at 7,542.62.

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 7,281.04.

The projected upper bound is: 7,849.67.

The projected lower bound is: 7,240.26.

The projected closing price is: 7,544.97.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 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 63.2480. This is not an overbought or oversold reading. The last signal was a sell 5 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 66.27. 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 43 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 79. This is not a topping or bottoming area. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -21.977 at 7,532.532. Volume was 20% above average (neutral) and Bollinger Bands were 51% narrower than normal.

Open High Low Close Volume___
7,533.3147,561.9007,516.4837,532.532 735,105,024

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

Moving Averages: 10-period 50-period 200-period
Close: 7,505.33 7,066.53 7,475.99
Volatility: 7 29 25
Volume: 583,280,512 608,389,056 568,482,048

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 0.8% 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 34 periods.

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