NASDAQ Composite (.IXIC) edges to record as investors monitor China virus

NASDAQ Composite (.IXIC) edges to record as investors monitor China virus

NASDAQ Composite (.IXIC) edges to record as investors monitor China virus

Wall Street stocks finished mostly higher on Thursday (Jan 23), with the Nasdaq edging to a fresh record, despite worries over the coronavirus in China.

Stocks opened solidly lower on worries the sickness could spread and dent the global economy.

But sentiment shifted after the World Health Organisation stopped short of calling the outbreak in China a public health emergency.

“We started down in the morning because of the move the Chinese made to quarantine cities in varying degrees,” said LBBW’s Karl Haeling.

“And then equities recovered after the WHO failed to declare a bigger crisis than it is,” he added.

The Dow Jones Industrial Average ended down 0.1 per cent at 29,160.06.

The broad-based S&P 500 climbed 0.1 per cent to 3,325.54, while the tech-rich Nasdaq Composite Index rose 0.2 per cent close at 9,402.48 and overtake the Jan 17 record by about 14 points.

Among companies reporting results, Procter & Gamble dipped 0.5 per cent after reporting better-than-expected profits despite slowing revenue growth. Briefing.com praised the report, but said P&G shares are being pressured by concerns over high valuation.

Comcast dropped 3.8 per cent after fourth-quarter profits beat expectations. A note from Stifel said Comcast is a “very well-run company,” but “faces ongoing challenges in a rapidly changing video landscape” due to the streaming trend that has eroded conventional cable.

The analysts endorsed Netflix, which rose 7.2 per cent after Stifel predicted shares would double as it lacks “the burden of a legacy business to protect.”

Among other companies reporting results, American Airlines rose 5.4 per cent, Texas Instruments added 0.6 per cent and Union Pacific rose 3.5 per cent.

Technical Indicators

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 8,941.63.

The projected upper bound is: 9,562.07.

The projected lower bound is: 9,279.97.

The projected closing price is: 9,421.02.

Candlesticks

A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 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 76.9718. This is not an overbought or oversold reading. The last signal was a sell 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 78.45. 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 sell 13 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 90. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 26 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 18.710 at 9,402.478. Volume was 10% above average (neutral) and Bollinger Bands were 31% wider than normal.

Open     High      Low     Close     Volume___
9,377.7239,409.1999,334.1299,402.478 611,038,208
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,306.94 8,851.58 8,220.23
Volatility: 9 10 18
Volume: 611,015,168 577,436,800 552,438,976

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 14.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 66 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.