NASDAQ Composite (.IXIC) ended the final trading day of the first quarter on a strong note

NASDAQ Composite (.IXIC) ended the final trading day of the first quarter on a strong note

NASDAQ Composite (.IXIC) ended the final trading day of the first quarter on a strong note

US stocks have ended the final trading day of the first quarter on a strong note on Friday and the S&P 500 posted its best quarterly gain since 2009, boosted by optimism over the latest round of trade talks between the United States and China.

The two sides said they made progress in trade talks that concluded on Friday in Beijing. The talks, aimed at resolving a nearly nine-month trade dispute between the world’s two largest economies, were called “candid and constructive” by Washington.

A Chinese delegation led by Vice Premier Liu He will head to Washington next week for another round of talks.

“The prospect of the trade war ending in the very near term is giving a boost to investor confidence, and in turn, we’re closing the quarter with some pretty good gains,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The benchmark S&P 500 rose 13.1 per cent in the quarter, its biggest quarterly gain since the third quarter of 2009 and its best first quarter since 1998.

Trade-sensitive industrials rose 1 per cent, while chipmakers, which have a large revenue exposure to China, also gained, with the Philadelphia chip index up 1.6 per cent.

The broader technology sector gained 1 per cent.

The Dow Jones Industrial Average rose 211.22 points, or 0.82 per cent, to 25,928.68, the S&P 500 gained 18.96 points, or 0.67 per cent, to 2,834.4 and the Nasdaq Composite added 60.16 points, or 0.78 per cent, to 7,729.32.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 7,940.98.

The projected lower bound is: 7,545.45.

The projected closing price is: 7,743.21.

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.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with NASDAQ COMPOSITE) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 45.4912. This is not an overbought or oversold reading. The last signal was a sell 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 60.36. 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 5 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 53. This is not a topping or bottoming area. The last signal was a sell 5 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 4 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 60.155 at 7,729.321. Volume was 8% above average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
7,726.7127,733.6257,688.5127,729.321 654,734,784

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

Moving Averages: 10-period 50-period 200-period
Close: 7,701.99 7,449.86 7,490.14
Volatility: 19 17 25
Volume: 579,226,944 592,776,896 583,079,296

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 3.2% above its 200-period moving average and is in an upward 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 bullish on .IXIC and have had this outlook for the last 55 periods.

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