NASDAQ Composite (.IXIC) hopes of an interest rate cut adding to theupbeat sentiment
Gains in energy shares helped WallStreet’s main indexes snap two days of weakness and trade higheron Thursday, with hopes of an interest rate cut adding to theupbeat sentiment. Crude prices rose as much as 4%, a day after hittingfive-month lows, after a suspected attack on two tankers in theGulf of Oman near Iran and the Strait of Hormuz, through which afifth of global oil consumption passes. urn:newsml:reuters.com:*:nL4N23K1S2
The S&P energy index .SPNY jumped 1.21%, the most among the 11 major sectors. Shares of oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N rose 1% each.
“There is a positive correlation between stock markets and oil prices which is the day’s catalyst,” Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
Wall Street’s main indexes have had a strong start to the month on hopes that the Federal Reserve will act to counter a slowing global economy due to the escalating trade war with China. The benchmark S&P 500 index .SPX has risen 5% so far in June.
U.S. consumer prices data on Wednesday pointed to a moderate rise in inflation, adding to expectations of an interest rate cut as early as July. The Fed policymakers are set to meet on June 18-19 and markets have priced in at least three rate cuts in 2019.
But on the trade front, there were doubts about any improvement in what President Donald Trump called “testy” trade relations with China in the run up to the G20 summit later in this month.
“There is still uncertainty about trade policy and about what the Fed is going to do. That is still keeping a lot of people back on their heels at this point,” Brown said.
Walt Disney CoDIS.N shares rose 2.56%, pushing the communication services sector .SPLRCL 0.80% higher, after Morgan Stanley raised its forecast for Disney Plus subscriber growth.
At 9:53 a.m. ET the Dow Jones Industrial Average .DJI was up 109.90 points, or 0.42%, at 26,114.73, the S&P 500 .SPX was up 13.06 points, or 0.45%, at 2,892.90 and the Nasdaq Composite .IXIC was up 51.41 points, or 0.66%, at 7,844.13.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,740.95.
The projected upper bound is: 8,074.23.
The projected lower bound is: 7,599.56.
The projected closing price is: 7,836.90.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 73.2513. 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 55.81. 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 7 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 4 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 44.411 at 7,837.130. Volume was 18% below average (neutral) and Bollinger Bands were 20% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,652.20 7,859.81 7,516.10
Volatility: 24 20 26
Volume: 546,431,552 537,185,280 589,071,872
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 4.3% above its 200-period moving average and is in an downward 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 bearish on .IXIC and have had this outlook for the last 24 periods.
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