NASDAQ Composite (.IXIC) gains on optimism for progress in U.S.-China trade talks
U.S. stocks climbed on Monday, but finished off earlier highs, led by gains in technology stocks on optimism for progress in U.S.-China trade talks and signs of a likely reprieve for Chinese telecom company Huawei.
Despite losing some of its initial steam, the S&P 500 still managed to close at a record high after the United States and China agreed on Saturday to resume trade talks. In addition, President Donald Trump also offered concessions including no new tariffs and an easing of restrictions on Huawei Technologies Co Ltd, while China agreed to make unspecified new purchases of U.S. farm products.
Still, stocks had given up a good portion of their earlier gains as investors contemplated whether the U.S. Federal Reserve would be as dovish as has been anticipated recently and caution crept back in for what is likely to be a lightly traded week due to the July Fourth holiday.
“There was celebration on the open and it was a case where if some of this trade uncertainty goes away, even if it is not solved, so to speak, that decreases the likelihood the Fed needs to step in, or at least step in as aggressively as people were thinking about a week and a half ago,” said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee.
Tech stocks, Wall Street’s top performers so far in 2019, jumped 1.45%, with heavyweight Apple Inc’s 1.83% gain providing the biggest boost.
Chipmakers with a sizable revenue exposure to China jumped nearly 5% at their session high before also pulling back, last showing a 2.65% gain in the Philadelphia Semiconductor index. Huawei supplier Micron Technology Inc gained 3.9%.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,344.10.
The projected lower bound is: 7,841.95.
The projected closing price is: 8,093.02.
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 25 white candles and 25 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 67.5072. This is not an overbought or oversold reading. The last signal was a sell 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 63.68. 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 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 136.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 16 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 84.918 at 8,091.162. Volume was 0% above average (neutral) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,988.98 7,861.34 7,513.17
Volatility: 15 21 26
Volume: 731,581,312 579,491,200 600,497,600
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 up today (bullish) 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 7.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 10 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.