NASDAQ Composite (.IXIC) Fed Raises Interest Rates

NASDAQ Composite (.IXIC) Fed Raises Interest Rates

NASDAQ Composite (.IXIC) Fed Raises Interest Rates

Stocks tumbled after the Federal Open Market Committee raised interest rates by 0.25% and signaled more increases were on the way, sending major market indexes to their lowest levels in more than a year.

Recent economic data showing softening in the economy appeared to raise hope among some that the FOMC might pause. However, that didn’t happen Wednesday, and the committee said in its policy statement that “some further gradual increases” in rates “will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation.”

The selloff came after stocks managed to advance earlier in the session. The technology-stock heavy Nasdaq Composite Index led the major market gauges lower, falling 2.2%, while the Dow Jones Industrial Average and S&P 500 both fell 1.5%. So far this year, the Dow is down 5.6%, while the S&P 500 is off 6.2%. The Nasdaq is off 3.9%.

Overall, the bias in prices is: Downwards

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

The projected upper bound is: 7,019.98.

The projected lower bound is: 6,209.71.

The projected closing price is: 6,614.84.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 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 10.8871. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 32.69. 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 37 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 -149.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 6 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -147.084 at 6,636.827. Volume was 27% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
6,777.5876,868.8586,586.5026,636.827 746,357,056

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 6,946.36 7,233.57 7,502.12
Volatility: 28 36 24
Volume: 627,661,632 626,643,328 550,512,384

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 11.5% below 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 6 periods.

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