NASDAQ Composite (.IXIC) market is completely focused on earnings

NASDAQ Composite (.IXIC) market is completely focused on earnings

NASDAQ Composite (.IXIC) market is completely focused on earnings

U.S. stocks closed higher Tuesday, with the Nasdaq finishing above 8,000 for the first time in six months, as investors parsed a fresh batch of corporate earnings for clues on the broader economy.

What did major indexes do?
The Dow Jones Industrial Average DJIA, +0.26% rose 67.89 points, or 0.3%, to 26,452.66, while the S&P 500 index SPX, +0.05% gained 1.48 points to 2,907.06.

The Nasdaq Composite Index COMP, +0.30% climbed 24.21 points, or 0.3%, to 8,000.23, closing above the psychologically important 8,000-mark for the first time since Oct. 3.

What did analysts say?

“The market is completely focused on earnings,” said Eric Kuby, chief investment officer for North Star Investment Management. “Companies really lowered their guidance coming into earnings season, and we’re getting to the point where companies are doing a good job of stepping over that lowered bar.”

“The tone of [UnitedHealth Group’s] outlook, and particularly the political overhang, is preventing them from rallying on good past performance,” he added.

“Of the 10 companies that have reported earnings this morning, nine have exceeded earnings-per -share forecasts and one reported results that were in line with expectations,” said Paul Hickey of Bespoke Investment Group, in a note to clients.

“While the revenue beat rate this morning hasn’t been nearly as strong (60%), it hasn’t been bad either,” he added. “Those positive results coupled with a big rally in Asia overnight has…the S&P 500 on pace for a new year-to-date high with all-time highs not too far away.”

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 8,179.19.

The projected lower bound is: 7,847.37.

The projected closing price is: 8,013.28.

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 28 white candles and 22 black candles for a net of 6 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 85.6473. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 69.54. 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 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 97. This is not a topping or bottoming area. The last signal was a sell 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 10 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 24.213 at 8,000.225. Volume was 15% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
8,000.5678,017.5577,978.8078,000.225 504,799,648

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

Moving Averages: 10-period 50-period 200-period
Close: 7,946.12 7,638.31 7,506.30
Volatility: 7 14 25
Volume: 503,757,504 572,546,112 572,153,152

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 6.6% 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 moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 67 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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