NASDAQ Composite (.IXIC) Market Down on Tech Stocks

NASDAQ Composite (.IXIC) Market Down on Tech Stocks

NASDAQ Composite (.IXIC) Market Down on Tech Stocks

Looks like this Turkey mess isn’t just a two-day story after all, as stocks took a step backward on Wednesday following what felt like a relief rally yesterday. And it didn’t help that tech had a bad day and a major retailer plunged by double digits. In the end though, the major indices did come well off their lows.

The NASDAQ led the indices downward with a drop of 1.23% to 7774.1. One of the big problems was actually Chinese tech giant Tencent, which saw its profit drop for the first time in a decade. The news exacerbated ongoing concerns about that country’s economy going forward.

Tech is also a big determinant in the direction of the S&P, so it’s no surprise that the index was off 0.76%. But it managed to stay above 2800 at 2818.4. Both the NASDAQ and S&P were within 1% of all time highs before trade and Turkey headlines led them lower starting last Friday. Yesterday’s rebound fostered hopes that the pullback was a blip, but now we have to wonder how long contagion fears will be impacting the market.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,957.47.

The projected lower bound is: 7,596.22.

The projected closing price is: 7,776.84.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 25.3132. This is not an overbought or oversold reading. 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 48.90. 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 38 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 -20. This is not a topping or bottoming area. The last signal was a buy 9 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 0 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -96.776 at 7,774.118. Volume was 7% above average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
7,810.0167,832.6567,732.6947,774.118 535,193,408

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

Moving Averages: 10-period 50-period 200-period
Close: 7,844.20 7,735.85 7,281.23
Volatility: 13 15 19
Volume: 480,910,944 521,492,384 515,633,056

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 6.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .IXIC and have had this outlook for the last 8 periods.

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