NASDAQ Composite (.IXIC) investors await US tariff hike
U.S. stocks finished mostly higher Monday, breaking a four-day losing streak as industrial companies and retailers rose. Technology companies recovered some of their steep losses from last week.
Transportation and other industrial companies continued their recent rally and retailers like Nike, Home Depot and Walmart all climbed. While technology companies rose overall, Apple fell after saying a new round of bigger U.S. tariffs could push it to raise prices.
The Nasdaq composite edged up 21.62 points, or 0.3 percent, to 7,924.16. The Russell 2000 index of smaller-company stocks rose 4.29 points, or 0.3 percent, to 1,717.47.
Investors expect the U.S. to put new tariffs on Chinese imports soon. The Hang Seng index in Hong Kong fell again Monday after President Donald Trump again threatened to tax almost everything the U.S. imports from China. The index has tumbled almost 20 percent since late January as the dispute has escalated.
Randy Frederick, vice president of trading and derivatives for Charles Schwab, said investors feel China has much more to lose in the conflict than the U.S. does, as it exports much more to the U.S. than it imports from it.
“If Chinese businesses and Chinese consumers get uncomfortable with this whole battle, they get nervous and they get tentative,” he said. “When people do that, they stop spending.”
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,808.38.
The projected upper bound is: 8,096.73.
The projected lower bound is: 7,768.41.
The projected closing price is: 7,932.57.
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 28 white candles and 22 black candles for a net of 6 white 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 16.0369. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 50.60. 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 4 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 -54. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 21.619 at 7,924.160. Volume was 5% below average (neutral) and Bollinger Bands were 3% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,019.14 7,835.23 7,382.78
Volatility: 13 13 19
Volume: 496,226,592 468,004,384 513,942,368
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 7.3% above its 200-period moving average and is in an upward trend. Volatility is 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 9 periods.