NASDAQ Composite (.IXIC) Ended Sharply Lower

NASDAQ Composite (.IXIC) Ended Sharply Lower

NASDAQ Composite (.IXIC) Ended Sharply Lower

Stocks ended sharply lower on Thursday, Oct. 4, as U.S. Treasury bond yields continued to surge.

Benchmark 10-year Treasury yields extended gains after Wednesday’s increase of 12 basis points — the biggest single-day move since the 2016 presidential elections. The 10-year Treasury was yielding 3.19% Thursday.

The moves followed a bullish assessment of the U.S. economy from Fed Chairman Jerome Powell Wednesday, and the strongest reading for the ISM non-manufacturing index in 21 years. The bond market action suggested investors were ready to re-price inflation expectations based on anticipated wage growth, a bet that could be confirmed as early as Friday, Oct. 5, when the U.S. jobs report will be released.
Jobless claims data released Thursday found that the number of Americans applying for unemployment benefits fell 8,000 to 207,000 in the week ended Sept. 29, putting claims near a 49-year low.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 8,045.52.

The projected lower bound is: 7,711.39.

The projected closing price is: 7,878.46.

Candlesticks

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 19.9593. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 17 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 41.64. 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 22 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 -154.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 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 1 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -145.575 at 7,879.510. Volume was 44% above average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
7,993.3317,997.1687,833.1577,879.510 764,994,304

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

Moving Averages: 10-period 50-period 200-period
Close: 8,000.78 7,920.74 7,484.42
Volatility: 12 13 19
Volume: 691,183,296 530,548,224 520,662,720

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 5.3% above its 200-period moving average and is in an downward trend. Volatility is 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 0 periods.

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