NASDAQ Composite (.IXIC) Longest Daily Losing Streak since April 24th
The US Dollar appreciated versus its FX majors, boosted by a strong jobs report where wage growth accelerated to its fastest since May 2009. US government bond yields rose, signaling firming Fed rate hike expectations. A similarly impressive employment report back in January arguably led to a collapse in the S&P 500 during the first couple of weeks in February as markets anticipated tightening credit conditions.
But the greenback’s appreciation was not done there. In the aftermath of critical event risk, Donald Trump announced that he is prepared to impose an additional $267b in Chinese tariffs on top of the already proposed $200b that could be implemented soon. Being the world’s reserve currency, the US Dollar then benefited from more gains as investors sought safety. As a result, the Euro depreciated against USD.
This also led to risk aversion as the S&P 500 ended the day 0.22% lower and marked its fourth day of consecutive losses. This was also its worst week since June. The NASDAQ Composite experienced its longest daily losing streak since April 24 th as it fell the most in a week since March. Emerging Markets entered bear territory as the MSCI EM ETF Index fell over 20% from its January peak.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,806.04.
The projected upper bound is: 8,077.12.
The projected lower bound is: 7,746.26.
The projected closing price is: 7,911.69.
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 long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 14.8453. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 48.68. 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 3 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 -49. This is not a topping or bottoming area. The last signal was a sell 3 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 0 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -20.185 at 7,902.541. Volume was 1% below average (neutral) and Bollinger Bands were 5% 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: 8,021.32 7,826.82 7,377.48
Volatility: 14 14 19
Volume: 492,181,856 468,697,184 513,883,392
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 7.1% 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 8 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.