NASDAQ Composite (.IXIC) is back within reach of record highs

NASDAQ Composite (.IXIC) is back within reach of record highs

NASDAQ Composite (.IXIC) is back within reach of record highs

The Nasdaq 100 brushed off trade concerns last week as robust employment data and strong consumer confidence helped to drive the tech-heavy index back near record levels. While the data helped to ward off concerns last week, time ahead of the December 15 tariff deadline in the US-China trade war continues to wind down.

With recent remarks from various Trump administration officials suggesting the tariffs will go into effect, and a trade deal may have to wait until after the 2020 US election, the Nasdaq 100 is in a precarious position – and last week may have offered an early glimpse at the consequences if the deadline is not pushed back.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 8,853.42.

The projected lower bound is: 8,484.67.

The projected closing price is: 8,669.05.

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 29 white candles and 21 black candles for a net of 8 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 12 rising windows in the last 50 candles–this makes the current rising window even more 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 63.3473. This is not an overbought or oversold reading. 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 63.97. 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 86. This is not a topping or bottoming area. The last signal was a sell 4 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 4 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 85.828 at 8,656.529. Volume was 2% below average (neutral) and Bollinger Bands were 43% narrower than normal.

Open     High      Low     Close     Volume___
8,634.2488,665.4398,630.5758,656.529 527,651,712
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,605.35 8,299.93 8,009.46
Volatility: 13 14 18
Volume: 531,010,240 516,117,216 552,914,560

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 8.1% above its 200-period moving average and is in an upward 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 bullish on .IXIC and have had this outlook for the last 35 periods.

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