NASDAQ Composite (.IXIC) down almost 12 percent from August high
The Nasdaq Composite Index plunged 4.4 percent for its biggest single-day slide since August 2011. The tech-heavy measure is now down 12 percent from an August record, meeting the accepted definition of a correction.
The measure’s biggest components — Apple, Amazon.com, Microsoft and Alphabet, which account for almost a quarter of the index by weighting — have dragged it lower as investors grow increasingly concerned that outsize profit gains won’t be sustainable. Texas Instruments plunged the most since January after its earnings disappointed, adding to woes in the beaten-down semiconductor sector.
Technology companies aren’t alone to blame for the losses. Since the high in late August, the Nasdaq Bank Index has fallen the most of the eight Nasdaq subgroups. With eight of the members falling 30 percent or more since then as banks report earnings, the 341-member gauge has tumbled 16 percent.
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 7,717.77.
The projected upper bound is: 7,369.91.
The projected lower bound is: 6,816.39.
The projected closing price is: 7,093.15.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
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 19.6516. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 26.68. This is where it usually bottoms. 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 8 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 -167.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 15 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -329.138 at 7,108.401. Volume was 33% above average (neutral) and Bollinger Bands were 150% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,449.36 7,838.97 7,519.37
Volatility: 38 23 22
Volume: 624,105,728 566,946,048 534,213,984
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 5.5% 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 moderate flows of volume out of .IXIC (mildly bearish). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 14 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.