NASDAQ Composite (.IXIC) futures declined 41 points

NASDAQ Composite (.IXIC) futures declined 41 points

NASDAQ Composite (.IXIC) futures declined 41 points

It ought to be another contentious week in global trade after Friday, June 15, escalated the tariff war between the U.S. and China to new highs.

Early Friday, President Donald Trump announced a fresh set of tariffs of about $50 billion on imports from China. Trump said in a statement the 25% tariffs would be applied to goods from China “that contain industrially significant technologies.” He added that tariffs were being imposed “in light of China’s theft of intellectual property and technology and its other unfair trade practices.” Trump said Friday the U.S. would pursue “additional tariffs” if China retaliates.

Soon after, China issued its own tariffs in retaliation. Late Friday, the country announced it planned to impose 25% tariffs on some U.S. goods starting July 6. Beijing said previously it would “take necessary measures to defend our legitimate rights and interests.”

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 7,423.17.

The projected upper bound is: 7,942.45.

The projected lower bound is: 7,577.10.

The projected closing price is: 7,759.77.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

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 81.6685. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 71.63. 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 6 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 93. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 10 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -14.664 at 7,746.378. Volume was 131% above average (neutral) and Bollinger Bands were 7% narrower than normal.

Open High Low Close Volume___
7,725.0327,755.7227,704.3417,746.3781,218,276,352

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,678.10 7,332.75 7,020.94
Volatility: 9 16 19
Volume: 571,353,984 496,770,432 503,425,824

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 10.3% 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 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 29 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.

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