NASDAQ Composite (.IXIC) has again been hit by trade jitters
US stocks ended little changed on Wednesday as a report the US-China trade deal could be delayed until December was offset by gains in healthcare shares.
The Nasdaq broke a three-day string of record closing highs, and the Dow barely snapped its two-day run of record highs.
A senior official of the Trump administration told Reuters a meeting between US President Donald Trump and Chinese President Xi Jinping to sign a long-awaited interim trade deal could be delayed until December, as discussions continue over terms and a venue.
That renewed worries over how long the trade war may continue and caused stocks to trade lower briefly.
The Trump administration official said it was still possible the “phase one” agreement would not be reached, but a deal was more likely than not.
The recent rally to record highs had been fueled by signs of progress in the US-China trade talks along with some upbeat earnings reports.
On Wednesday, Humana rose 3.5 per cent as the health insurer reported quarterly profit that beat estimates on higher sales of its government-backed Medicare Advantage health plans.
CVS gained 5.4 per cent after the pharmacy chain posted a better-than-expected quarterly profit, boosted by its Aetna health insurance business and pharmacy benefit management unit. The S&P health care was up 0.6 per cent.
The Dow Jones Industrial Average fell 0.07 points to 27,492.56, the S&P 500 gained 2.16 points, or 0.07 per cent, to 3,076.78 and the Nasdaq Composite dropped 24.05 points, or 0.29 per cent, to 8,410.63.
Also in health care, DaVita shares jumped 12.9 per cent following its results.
The S&P 500 financials index extended recent gains, rising 0.4 per cent, while the S&P 500 energy index fell 2.3 per cent following declines in oil prices.
Match Group fell 2.5 per cent as the Tinder owner forecast fourth-quarter revenue below estimates in the face of stiff competition from rival online dating services. Its parent firm, IAC/InterActiveCorp, dropped 4.3 per cent.
Declining issues outnumbered advancing ones on the NYSE by a 1.21-to-1 ratio; on Nasdaq, a 1.76-to-1 ratio favored decliners.
The S&P 500 posted 14 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 70 new highs and 68 new lows.
Volume on US exchanges was 7.93 billion shares, compared to the 6.74 billion average for the full session over the last 20 trading days.
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 8,121.06.
The projected upper bound is: 8,626.52.
The projected lower bound is: 8,218.08.
The projected closing price is: 8,422.30.
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.
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 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 86.1740. 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 65.33. 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 109 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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -24.052 at 8,410.628. Volume was 11% above average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,329.30 8,100.71 7,880.60
Volatility: 11 16 19
Volume: 521,381,568 525,570,720 555,058,944
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 is currently 6.7% 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 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 14 periods.