Home Headline News NASDAQ Composite (.IXIC) in rally mode?

NASDAQ Composite (.IXIC) in rally mode?

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NASDAQ Composite (.IXIC) in rally mode?

The Nasdaq has gained 12.1% so far in 2019, while the S&P 500 index has gained 10%, and the Dow Jones Industrial Average has climbed 9.5%, as of Wednesday late-morning trading action (The Dow and S&P 500 , usually defined as a decline of at least 10% from a recent peak. The pair of indexes never fell the requisite 20% to enter bear market.)

The current bear run from its low at 35 trading days (Wednesday’s close would mark the 36th day) would be the longest such period since a 69-day stretch that ended in January 1991 (see chart below):

From entry to exit, the current bear market would be the longest bear market run since the 218 -day bear market in 2008, according to Dow Jones.

The Nasdaq’s gains have come as major tech and internet-related components, which had helped to jolt the market higher during its lengthy bull-market run, have rebounded after a slump. The so-called FAANG cohort, made up of Facebook IncAmazon IncApple Inc. Netflix and Google-parent Alphabet Inc. are decidedly higher so far this year.

Last year’s weaker performers have so far led the way, with Netflix shares up 32.4% so far in 2019 and Facebook shares gaining 26% over the same period, producing the sharpest gains among the FAANG stocks.

CORRECTION AND AMPLIFICATION: An earlier version of this article incorrectly referenced the historical run for the Nasdaq Composite Index’s bear market. The current bear market is on track for its longest such period since a 218 day-trading day stretch in 2008, from entry to exit. From its bear-market low, the current 34-day stint is the longest since a 69-day stretch in 1991.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,864.81.

The projected lower bound is: 7,409.45.

The projected closing price is: 7,637.13.

Candlesticks

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.

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 20.3749. This is not an overbought or oversold reading. The last signal was a sell 18 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 38.04. 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 sell 18 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 -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 sell 17 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 8.725 at 7,637.009. Volume was 25% below average (neutral) and Bollinger Bands were 36% wider than normal.

Open High Low Close Volume___
7,675.5677,694.1467,631.2537,637.009 422,809,376

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,742.22 7,882.65 7,530.38
Volatility: 28 19 26
Volume: 532,857,248 556,875,776 582,005,376

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 1.4% above 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 moderate flows of volume out of .IXIC (mildly bearish). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 11 periods.

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