NASDAQ Composite (.IXIC) ends at record amid lower anxiety at US-Iran conflict
The Nasdaq surged to a fresh record on Wednesday, as the major US indices all rose amid diminished anxiety over the US-Iran conflict in the wake of an attack on American troops.
The tech-rich Nasdaq Composite Index finished up 0.7 percent at 9,129.24, eclipsing a January 2 record by almost 40 points.
The Dow Jones Industrial Average gained 0.6 percent to close at 28,745.09, while the broad-based S&P 500 added 0.5 percent to 3,253.05.
Wall Street opened the session cautiously following a series of missile attacks by Iran on bases hosting US and other foreign troops in neighboring Iraq. The strikes were Iran’s first concrete retaliation over the US killing of a top Iranian commander.
Iran’s supreme leader Ayatollah Ali Khamenei vowed there was more to come, but President Donald Trump said Tehran appeared to be “standing down” after the missile attack caused no casualties.
“At least for now, the retaliation is behind us,” said Art Hogan, chief market strategist at National Securities. “The market can move on.”
Hogan said investors are focused on an expected signing of a US-China trade accord next week, and upcoming quarterly earnings season.
In economic data, private companies added 202,000 jobs in December, according to payrolls firm ADP. The figures bested analyst expectations and came ahead of Friday’s key government jobs report.
Among individual shares, Boeing dropped 1.8 percent, weighing on the Dow, following the fatal crash of a Ukraine International Airlines plane in Iran.
The aircraft involved in the accident was 737-800, a predecessor to the Boeing 737 MAX, which has been grounded following two earlier crashes.
Analysts said it was too soon to speculate on causes of the crash, but characterized the incident as another unwelcome challenge for the company.
Another Dow member, Walgreens Boots Alliance, sank 5.8 percent after reporting disappointing quarterly results.
Macy’s gained 2.4 percent after better-than-expected sales during the critical November-December holiday period.
Grubhub surged 12.6 percent following a report that the food delivery company was considering strategic options, including a possible sale.
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 8,729.63.
The projected upper bound is: 9,360.21.
The projected lower bound is: 9,081.74.
The projected closing price is: 9,220.97.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
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).
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 88.6486. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 2 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 76.38. 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 4 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 189.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 buy 17 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 74.184 at 9,203.426. Volume was 9% above average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 9,053.33 8,683.22 8,152.90
Volatility: 12 10 18
Volume: 558,958,400 565,398,656 549,418,560
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 12.9% 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 very strong flows of volume into .IXIC (bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 57 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.
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