NASDAQ Composite (.IXIC) Investors await Fed chair’s speech on Friday

NASDAQ Composite (.IXIC) Investors await Fed chair’s speech on Friday

NASDAQ Composite (.IXIC) Investors await Fed chair’s speech on Friday

Financial shares led U.S.stocks lower on Tuesday to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week.

The S&P 500 financial index .SPSY dropped 1.4% and the group weighed most heavily on the benchmark index among its major sectors, which all registered losses.

Prior to Tuesday’s session, U.S. stocks had recovered most of their losses from a steep sell-off last Wednesday, which was triggered by a brief inversion of the yield curve between 2-yerand 10-year Treasuries, widely considered a harbinger of recession. Reports of stimulus efforts in China and Germany,along with the subsequent steepening of the yield curve, helpedassuage recession fears.

The S&P 500 is now 4.1% shy of its record closing high in July after having fallen as much as 6.2% below that level.

Investors said they were looking forward to Friday’s speech from the Fed’s Powell at the Jackson Hole central bankers’conference for more clues on the course of monetary policy and interest rates. Hints on the U.S. central bank’s plans may also be found in minutes from the Fed’s July policy meeting, which will be released on Wednesday.

Declining issues outnumbered advancing ones on the NYSE by a1.49-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 8,211.73.

The projected lower bound is: 7,690.41.

The projected closing price is: 7,951.07.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 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 69.2461. This is not an overbought or oversold reading. The last signal was a buy 9 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 47.96. 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 54 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 38. This is not a topping or bottoming area. The last signal was a buy 8 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 23 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -54.252 at 7,948.560. Volume was 19% below average (neutral) and Bollinger Bands were 41% wider than normal.

Open     High      Low     Close     Volume___
7,989.3628,010.5797,948.0927,948.560 452,713,312
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,912.88 8,044.38 7,584.13
Volatility: 30 21 25
Volume: 565,817,728 570,633,600 582,811,840

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 4.8% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 13 periods.

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