NASDAQ Composite (.IXIC) – Futures slide as jobless claims top 6 million
U.S. stock index futures fell on Thursday after U.S. jobless claims topped a whopping 6 million as more jurisdictions enforced stay-at-home measures to curb the coronavirus pandemic.
The number of Americans filing claims for unemployment benefits hit a record high for a second straight week and far exceeded the median estimate of 3.50 million in a Reuters survey of economists.
“This shows the magnitude and the seriousness of this problem,” said Richard Steinberg, chief market strategist at Colony Group, in Florida.
“We’re going to be digesting this for awhile and until the data becomes less worse, we’re going to have lumpiness in trading around these shock-and-awe numbers.”
Sentiment was earlier lifted by a recovery in oil prices as U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach an agreement to cut output to cope with plunging demand.
The S&P 500 has lost about $8 trillion in market value since a mid-February record high as the outbreak spread deeper in the United States and Trump warned of more economic pain in the next two weeks as efforts to contain the virus crush business activity.
Across the Atlantic, British Airways <ICAG.L> jumped 3% after reports it was in talks with its union about a plan to suspend around 32,000 staff, marking one of the industry’s most dramatic moves yet to survive the coronavirus impact.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 8,573.67.
The projected upper bound is: 8,244.53.
The projected lower bound is: 6,396.22.
The projected closing price is: 7,320.38.
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 27 white candles and 23 black candles for a net of 4 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 7 falling windows in the last 50 candles–this makes the current falling window even more 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 59.6305. This is not an overbought or oversold reading. The last signal was a sell 1 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 43.06. 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 13 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 18. 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -339.516 at 7,360.582. Volume was 22% above average (neutral) and Bollinger Bands were 102% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,382.77 8,630.85 8,399.25
Volatility: 76 76 41
Volume: 1,120,042,112 885,379,584 639,516,736
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 12.4% 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 26 periods.