NASDAQ Composite (.IXIC) Market Predicted To See Higher Open

NASDAQ Composite (.IXIC) Market Predicted To See Higher Open

NASDAQ Composite (.IXIC) Market Predicted To See Higher Open

President Trump hasn’t forgotten about the $200 billion in China tariffs that’ve been in limbo the past few weeks. On Friday, news reports said he was willing to proceed with his threat, and the impact may have kept the S&P from reaching an all-time high. In the end though, the major indices finished the week with solid gains.

We’ve recently been hearing about the potential for new trade talks with China, which suits the market just fine. But who knows what will happen if POTUS actually follows through with the tariffs? So far, the market isn’t panicking, as evidenced by the indices’ recovery from the mid-day selloff.

“There seems to be some complacency surrounding the tariffs. It seems that investors don’t believe the extra round of tariffs will go into effect at all. Essentially both China and the market are calling Trump’s bluff,” said Jeremy in Counterstrike.

The S&P entered Friday’s session just about 10 points off a new record…and that’s pretty much where it closed as well. The index looked like it might try to make history today until the trade news broke. It still recovered enough from a dip to stay above 2900 for a second straight day and gain 0.03% to nearly 2905. It advanced 1.2% for the week.

The NASDAQ couldn’t get back into the green, but only slipped by 0.05% to 8010. It was the best performer of the week with a rise of 1.4%. Therefore, it made up more than half of last week’s 2.6% plunge. Fortunately, last week’s “tech wreck” didn’t carry over thanks to a good September event for Apple and some recovery in the chipmakers.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,822.43.

The projected upper bound is: 8,178.00.

The projected lower bound is: 7,859.03.

The projected closing price is: 8,018.52.

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 77.3389. This is not an overbought or oversold reading. The last signal was a buy 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 57.36. 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 8 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 5. This is not a topping or bottoming area. The last signal was a sell 8 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 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -3.666 at 8,010.044. Volume was 3% below average (neutral) and Bollinger Bands were 14% narrower than normal.

Open High Low Close Volume___
8,026.1638,040.8267,979.7768,010.044 487,336,576

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

Moving Averages: 10-period 50-period 200-period
Close: 7,989.58 7,870.90 7,404.80
Volatility: 11 13 19
Volume: 517,384,512 471,891,776 516,516,256

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 8.2% above its 200-period moving average and is in an upward trend. Volatility is low 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 13 periods.

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