NASDAQ Composite (.IXIC) falls on concerns about US-China trade deal progress
Wall Street’s main indexes ended Wednesday’s session lower on concerns that a “phase one” trade deal between Washington and Beijing may not be completed this year, while minutes from the Federal Reserve’s October policy meeting appeared to offer little help.
The Fed minutes offered little guidance on what would cause policymakers to change their outlook after they decided at the October meeting on the third interest rate cut of 2019 and signalled they were done with the easing.
Wall Street, which managed to end the day above its session lows, had kicked off trading in the red after a U.S. Senate measure aimed at protecting human rights in Hong Kong amid prolonged protests appeared to escalate U.S.-China tensions.
Then equities deepened losses, hitting a session low in the early afternoon after a Reuters report citing experts and people close to the White House as saying completion of a U.S.-China trade deal could slide beyond 2019.
The trade-sensitive technology sector fell 0.7%, the biggest drag on the benchmark index while the Philadelphia Semiconductor index slid 1.2%.
The materials index was the biggest percentage decliner of the major sectors on the day with a 1.2% loss. The interest rate-sensitive financial index pulled back from its session low but still ended the day down 0.5% as safety buying pushed down the benchmark U.S. 10-year Treasury yield further.
Reports from Target Corp and Lowe’s Cos Inc were bright spots on Wednesday, with their shares jumping 14% and 3.9%, respectively, after the two companies raised their profit forecasts.
But apparel retailer Urban Outfitters Inc fell 15.2% after missing quarterly sales estimates on weaker demand for its namesake brand.
Declining issues outnumbered advancing ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.70-to-1 ratio favoured decliners.
The S&P 500 posted 26 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 95 new highs and 98 new lows.Volume on U.S. exchanges was 7.87 billion shares, compared with the 7.03 billion average for the last 20 trading days.
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 8,265.72.
The projected upper bound is: 8,716.23.
The projected lower bound is: 8,351.52.
The projected closing price is: 8,533.87.
A black body occurred (because prices closed lower 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.
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 77.8150. 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 66.69. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 84. This is not a topping or bottoming area. The last signal was a sell 0 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 0 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -43.926 at 8,526.732. Volume was 44% above average (neutral) and Bollinger Bands were 13% narrower 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: 8,500.95 8,196.79 7,944.62
Volatility: 6 14 18
Volume: 549,165,376 532,509,792 553,262,464
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 7.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 24 periods.
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