NASDAQ Composite (.IXIC) Futures Fall

NASDAQ Composite (.IXIC) Futures Fall

NASDAQ Composite (.IXIC) Futures Fall

Most stocks rose in Asia following news that U.S.-China trade talks will resume in person next week. Nasdaq futures fell after the U.S. opened an antitrust probe into big technology companies.

The dollar hit a two-week high against the euro ahead of Thursday’s European Central Bank meeting. Australia’s dollar fell after an influential economist brought forward his forecast for the next interest-rate cut by the nation’s central bank. Equity benchmarks were up in Tokyo, Sydney, Shanghai and Hong Kong, and slipped in Seoul. Futures on the S&P 500 Index were also little changed after that gauge climbed back above 3,000 Tuesday. Crude oil advanced for a fourth session, trading around $57 a barrel in New York.

Shares of Amazon, Alphabet and Facebook declined more than 1% in post-market trading after the Justice Department opened a broad antitrust review into whether dominant technology firms are unlawfully stifling competition. On the corporate earnings front, encouraging reports came from Coca-Cola, United Technologies and Texas Instruments offered a fillip to U.S. stock investors.

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 7,944.71.

The projected upper bound is: 8,495.17.

The projected lower bound is: 8,021.02.

The projected closing price is: 8,258.09.

Candlesticks

A white body occurred (because prices closed higher 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.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with NASDAQ COMPOSITE) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 53.0102. This is not an overbought or oversold reading. 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 63.26. 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 34 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 87. This is not a topping or bottoming area. The last signal was a sell 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 47.267 at 8,251.403. Volume was 16% below average (neutral) and Bollinger Bands were 16% narrower than normal.

Open High Low Close Volume___
8,242.5008,251.8268,193.8898,251.403 474,750,688

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

Moving Averages: 10-period     50-period     200-period
Close: 8,211.82 7,899.95 7,527.25
Volatility: 10 19 26
Volume: 488,393,344 561,659,520 590,064,384

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 9.6% 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 volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 25 periods.

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