NASDAQ Composite (.IXIC) expectations of a supportive central bank kept in check worries of a flare up in trade tensions after President Donald Trump’s fresh China tariffs threat
Wall Street’s main indexes edged higher in choppy trading on Thursday, as expectations of a supportive central bank kept in check worries of a flare up in trade tensions after President Donald Trump’s fresh China tariffs threat.
Trump said he would decide on more tariffs “probably right after the G20” meeting later this month, which followed his warning overnight to levy duties on at least another $300 billion worth of Chinese goods.
Federal Reserve policymakers have hinted they would be ready to cut rates if the U.S.-China trade spat threatens a decade-long expansion. Since early May, Trump has slapped new tariffs on Chinese imports and warned of U.S. levies on Mexico.
“While the escalation in China is important, the fact that he chose to go after Mexico is more important in fears surrounding trade overall,” said Matt Ruffalo, chartered financial analyst at Clarfeld Financial Advisors.
“That’s why investor fears regarding trade have heightened but there has been somewhat of an overshadowing by earlier comments around the Fed.”
Meanwhile, the European Central Bank’s decision not to raise interest rates in the next year led to a flattening of the U.S. Treasury yield curve, which came off its steepest level in seven months the day before. US/
The ECB also underscored the threat to global economic expansion from the trade disputes by trimming the region’s growth forecasts for the next two years.
At 13:08 p.m. ET, the Dow Jones Industrial Average was up 75.13 points, or 0.29%, at 25,614.70, while the S&P 500 was up 6.37 points, or 0.23%, at 2,832.52. The Nasdaq Composite was down 1.93 points, or 0.03%, at 7,573.55.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,730.73.
The projected upper bound is: 7,848.07.
The projected lower bound is: 7,380.00.
The projected closing price is: 7,614.03.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 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 88.6466. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 45.33. 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 buy 2 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 -9. This is not a topping or bottoming area. The last signal was a buy 2 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 25 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 40.078 at 7,615.553. Volume was 4% below average (neutral) and Bollinger Bands were 26% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,549.20 7,853.85 7,517.98
Volatility: 24 19 26
Volume: 578,796,416 541,649,216 586,932,736
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 1.3% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 19 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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