NASDAQ Composite (.IXIC) mint record highs after strong U.S. data, waning virus fears

NASDAQ Composite (.IXIC) mint record highs after strong U.S. data, waning virus fears

NASDAQ Composite (.IXIC) mint record highs after strong U.S. data, waning virus fears

The benchmark S&P 500 posted a record closing high on Wednesday as U.S. stocks rallied for a third straight day on encouraging U.S. economic data and waning fears of the financial fallout from the corona virus in China.

The Nasdaq also notched a record close but steep losses in Tesla shares limited the index’s advance.

The ADP National Employment Report showed private payrolls jumped by 291,000 jobs in January, the most since May 2015, while a separate report showed U.S. services sector activity picked up last month, suggesting the economy could continue to grow moderately this year even as consumer spending slows.

The S&P 500 .SPX has more than recovered from last week’s steep losses after China boosted liquidity to limit the economic impact of the coronavirus outbreak.

“There are few alternatives to stocks in this low interest rate environment and as long as the economy shows that it can hang in there, people keep coming back to the market as the place to be invested,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The S&P 500 posted 71 new 52-week highs and no new lows; the Nasdaq Composite recorded 127 new highs and 28 new lows.

About 8 billion shares changed hands in U.S. exchanges, above the 7.7 billion daily average over the last 20 sessions.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 9,733.45.

The projected lower bound is: 9,324.02.

The projected closing price is: 9,528.73.

Candlesticks

A black body occurred (because prices closed lower 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.

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 86.3332. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 66.40. 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 154.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 8 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 40.709 at 9,508.683. Volume was 13% above average (neutral) and Bollinger Bands were 13% narrower than normal.

Open     High      Low     Close     Volume___
9,574.0969,574.9359,454.9289,508.683 625,908,480
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,310.15 8,993.44 8,279.77
Volatility: 24 14 19
Volume: 613,338,176 590,171,968 557,809,152

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 14.8% 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 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 75 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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