NASDAQ Composite (.IXIC) fate of U.S.-China trade talks continued to weigh on investor sentiment
Early gains in benchmark U.S. indexes faded and global stock markets retreated Tuesday as concerns about Italy’s budget and the fate of U.S.-China trade talks continued to weigh on investor sentiment, pushing safe haven U.S. Treasury yields to their lowest levels since October 2017.
Markets had been cheered by limited gains for nationalists in the EU elections, though wins for eurosceptic parties in Italy, France, Poland and would-be ex-member Britain, as well as snap elections in Greece and political turmoil in Austria, curbed risk appetite.
In the United States, the Dow Jones Industrial Average fell 237.92 points, or 0.93%, to 25,347.77, the S&P 500 lost 23.67 points, or 0.84%, to 2,802.39 and the Nasdaq Composite dropped 29.66 points, or 0.39%, to 7,607.35.
Trade worries remained high. U.S. President Donald Trump said on Monday that Washington was not ready to make a deal with China, but that he expected one in the future. At the same time, he pressed Japanese Prime Minister Shinzo Abe to reduce Japan’s trade imbalance with the United States.
Hope for a U.S.-China trade agreement still underpins optimism in global markets.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 7,832.39.
The projected lower bound is: 7,379.06.
The projected closing price is: 7,605.73.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
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 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 15.1231. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 19 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 36.79. 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 19 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 -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 sell 18 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -29.658 at 7,607.351. Volume was 39% above average (neutral) and Bollinger Bands were 36% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,738.26 7,881.02 7,528.97
Volatility: 20 18 26
Volume: 546,403,968 544,054,464 583,559,872
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 1.0% 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 moderate flows of volume out of .IXIC (mildly bearish). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 12 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.