NASDAQ Composite (.IXIC) investors paused following a run of gains tied to optimism over easing trade tensions

NASDAQ Composite (.IXIC) investors paused following a run of gains tied to optimism over easing trade tensions

NASDAQ Composite (.IXIC) investors paused following a run of gains tied to optimism over easing trade tensions

U.S. stocks edged lower in late afternoon trading on Tuesday, as investors paused following a run of gains tied to optimism over easing trade tensions and the prospect of an interest rate cut by the Federal Reserve.

Industrials and utilities indexes led the way lower, while a decline in technology stocks , including Microsoft Corp and Adobe Inc, added pressure.

Early enthusiasm for stocks was mostly “follow-through from some of the news from yesterday,” said Jack Ablin, chief investment officer at Cresset Capital Management in Chicago. There’s “not much else to latch onto.

“My only concern is it’s a news-driven market right now, so all of that is subject to change,” Ablin added. “It’s not a trending catalyst.”

Data showed U.S. producer prices increased solidly for a second straight month in May, in line with expectations of economists polled by Reuters, pointing to a steady pickup in underlying inflation pressures.

The S&P 500 industrial index fell 0.9%, weighed down by losses in United Technologies Corp and Raytheon Co .

United Technologies fell 3.9% and Raytheon shed 4.9%, a day after President Donald Trump gave mixed signals on whether he believed the $121 billion merger between the companies should go forward. On Monday, Raytheon had edged higher while United Technologies lost 3.1%.

The S&P utilities index on Tuesday was down 1%.

Optimism over Trump’s decision late on Friday to hold off import tariffs on Mexico drove Wall Street up on Monday, even though the United States warned it would impose tariffs if its demands were not satisfied.

Separately, Trump said Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees again to four or five “major points,” which Trump did not specify.

The Dow Jones Industrial Average fell 41.26 points, or 0.16%, to 26,021.42, the S&P 500 lost 3.75 points, or 0.13%, to 2,882.98 and the Nasdaq Composite dropped 9.36 points, or 0.12%, to 7,813.81.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,735.30.

The projected upper bound is: 8,064.51.

The projected lower bound is: 7,584.35.

The projected closing price is: 7,824.43.

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 25 white candles and 25 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 86.7852. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 55.33. 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 5 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 140.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 2 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -0.603 at 7,822.566. Volume was 5% below average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
7,901.0427,909.9947,798.6287,822.566 534,575,104

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

Moving Averages: 10-period 50-period 200-period
Close: 7,600.72 7,860.77 7,517.07
Volatility: 24 20 26
Volume: 555,579,136 539,324,928 588,686,208

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 4.1% 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 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 22 periods.

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