NASDAQ Composite (.IXIC) investors expect strong earnings

NASDAQ Composite (.IXIC) investors expect strong earnings

NASDAQ Composite (.IXIC) investors expect strong earnings

U.S. stocks rose on Monday, helped by bank, industrial and energy shares, as investors looked ahead to a strong quarterly earnings season.

Bank stocks were the biggest gainers, with the S&P banks index rising 2.3 percent, on track for its biggest percentage gain in over three months.

A stronger economy and plans for more buybacks are helping bank shares, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Investors may also be relieved following days of worry over trade tensions between the United States and China, he said.

The United States and China slapped tit-for-tat tariffs on $34 billion of each other’s goods on Friday, escalating a months-long trade dispute between the two countries.

“If it escalates, maybe it could become a problem but the angst going into last Friday was pretty significant, and now with just the realization that we’re here and the world hasn’t come to an end, and we’re on the eve of what’s going to be a dynamite earnings season, the money is falling in,” Hellwig said.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,936.09.

The projected lower bound is: 7,601.81.

The projected closing price is: 7,768.95.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 97.7875. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 61.71. 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 11 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 92. This is not a topping or bottoming area. The last signal was a buy 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 67.814 at 7,756.201. Volume was 15% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
7,731.7457,757.2847,702.0637,756.201 453,760,896

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

Moving Averages: 10-period 50-period 200-period
Close: 7,565.41 7,486.01 7,110.74
Volatility: 22 14 19
Volume: 487,824,704 531,172,192 511,136,128

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 9.1% above its 200-period moving average and is in an downward 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 bearish on .IXIC and have had this outlook for the last 7 periods.

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