NASDAQ Composite (.IXIC) Hits Another Closing High Despite Apple’s Warning

NASDAQ Composite (.IXIC) Hits Another Closing High Despite Apple’s Warning

NASDAQ Composite (.IXIC) Hits Another Closing High Despite Apple’s Warning

You’d think an epic selloff was inevitable after learning that the coronavirus would impact Apple’s results, but instead stocks came well off their lows on Tuesday with one index even closing at a new high.  

Yesterday, the iPhone maker said that the sickness would pull its second-quarter revenue below expectations, which were between $63 billion and $67 billion.

The market was already nervous about the coronavirus, and now it begins this short week knowing that it will hurt one of the strongest, most valuable companies in the world.

Apple also serves as a barometer for the whole economy, leaving investors concerned that the full consequence of this virus hasn’t been felt yet.

So naturally, the major indices started Tuesday sharply lower. But then…

The NASDAQ (of all indices!) turned positive late in the session and finished higher by 0.02% (or about 1.57 points) to 9732.74. Since it started the session at an all time high, ANY advance meant a new record.

While Apple slipped 1.8% on its warning, the remaining FAANGs were positive (except for a slight 0.07% loss for Alphabet). Netflix and Facebook each rose by nearly 2%.

The other indices couldn’t make it all the way back, but did come well of their lows. The S&P slipped 0.29% to 3370.29 and the Dow dropped 0.56% (or about 165 points) to 29,232.19. The latter index had been down by approximately 280 points at its worst.

Stocks are coming off back-to-back weekly gains. The NASDAQ jumped 2.2% last week, while the S&P and Dow improved 1.6% and 1%, respectively.

Since the market was closed yesterday, we’re already halfway through the week with some ground to recover to keep the streak alive. Fortunately, the market is still handling the coronavirus rather well. Let’s hope it continues…

Technical Indicators

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 9,186.98.

The projected upper bound is: 9,955.28.

The projected lower bound is: 9,556.85.

The projected closing price is: 9,756.06.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 89.2164. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 17 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 71.41. 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 16 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 89. This is not a topping or bottoming area. The last signal was a sell 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 1.567 at 9,732.743. Volume was 1% below average (neutral) and Bollinger Bands were 56% wider than normal.

Open     High      Low     Close     Volume___
9,679.0399,747.6769,675.7979,732.743 555,308,672
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,623.85 9,162.15 8,341.92
Volatility: 14 14 19
Volume: 570,779,392 594,737,856 559,146,432

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 16.7% above its 200-period moving average and is in an upward 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 bullish on .IXIC and have had this outlook for the last 83 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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