NASDAQ Composite (.IXIC) Is it time to start panicking?

NASDAQ Composite (.IXIC) Is it time to start panicking?

NASDAQ Composite (.IXIC) Is it time to start panicking?

Is it time to start panicking? Stocks ended much lower on Friday as investors begin to re-assess their risk tolerance after more data suggested a global economic slowdown could be imminent.

A weak jobs report seemingly caught investors off guard, pushing the Dow Jones Industrial Average lower for a fifth consecutive session — its longest losing streak since June. Wall Street was spooked by the Labor Department announcing the U.S. economy added just 20,000 new jobs in February, which was a major miss from the 178,000 jobs economists had forecasted.

The Dow, which at one point was down more than 200 points, ended Friday down 22.99 points, or 0.1%, to close at 25,450.24. The S&P 500 index is in the midst of its worst losing streak in four months, shedding 5.86 points, or 0.2%, to close at 2,743.07. The tech-heavy Nasdaq Composite Index, meanwhile, declined by 13.32 points, or 0.2%, to close at 7,408.14 — its weakest stretch in almost a year. On a weekly basis, the Nasdaq declined 2.5%, while both the Dow and the S&P 500 fell 2.2%.

Is this a buying opportunity? If you’re worried about the jobs report, you’re likely worrying too much, according to some economists. JJ Kinahan, chief market strategist at TD Ameritrade, advised investors not to read too much into it, noting that the recent volatility in the numbers may be related to the government shutdown. And despite the weak number, the unemployment rate still fell to 3.8% from 4%. Just as impressive, average hourly earnings rose by 11 cents per hour — the largest gain in a decade.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,318.88.

The projected upper bound is: 7,698.69.

The projected lower bound is: 7,166.20.

The projected closing price is: 7,432.45.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 31 white candles and 19 black candles for a net of 12 white 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 15.0567. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 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 50.20. 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 49 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 -185.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 6 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -13.322 at 7,408.142. Volume was 8% below average (neutral) and Bollinger Bands were 55% narrower than normal.

Open High Low Close Volume___
7,334.3527,411.5207,332.9177,408.142 559,330,048

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

Moving Averages: 10-period 50-period 200-period
Close: 7,527.56 7,183.65 7,479.96
Volatility: 10 25 25
Volume: 602,602,944 575,460,544 572,028,928

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 1.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 40 periods.

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