NASDAQ Composite (.IXIC) United States and China Provide Mixed Signals

NASDAQ Composite (.IXIC) United States and China Provide Mixed Signals

NASDAQ Composite (.IXIC) mixed as uncertainty over when a trade deal between the United States and China would be reached clouded sentiment

U.S. stocks flitted between gains and losses on Thursday as uncertainty over when a trade deal between the United States and China would be reached clouded sentiment.

Wall Street’s main indexes briefly moved higher after President Donald Trump said the United States was doing very well in trade talks with China, but could not say whether a final deal would be reached.

“Trade is the single biggest thing that markets are focusing on. You see indexes moving between slight gains and losses as investors don’t know how to read the mixed signals on trade,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Shayne Heffernan said ” it is difficult to bet on the outcome of the trade talks, best to stick with those that have the least exposure”

Chipmakers, which rely on China for a large portion of their revenue also lost ground with the Philadelphia SE chip index off 0.12 percent.

Boeing, the single largest U.S. exporter to China, slipped 0.7 percent. The world’s largest planemaker had its own troubles this week after its money-spinning 737 MAX jets were grounded globally following a recent fatal crash in Ethiopia.

Meanwhile, a Commerce Department report showed sales of new U.S. single-family homes fell more than expected in January, suggesting the housing market weakness persisted early in the first quarter.

Declining issues outnumbered advancers for a 1.08-to-1 ratio on the NYSE and a 1.12-to-1 ratio on the Nasdaq.

The S&P index recorded 36 new 52-week highs and no new low, while the Nasdaq recorded 52 new highs and 29 new lows.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 7,881.69.

The projected lower bound is: 7,419.96.

The projected closing price is: 7,650.82.

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 32 white candles and 18 black candles for a net of 14 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 89.6617. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 64.27. 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 buy 53 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -12.495 at 7,630.910. Volume was 2% below average (neutral) and Bollinger Bands were 63% narrower than normal.

Open High Low Close Volume___
7,644.7867,653.1027,627.0207,630.910 590,478,784

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

Moving Averages: 10-period 50-period 200-period
Close: 7,550.82 7,265.05 7,483.76
Volatility: 17 21 25
Volume: 582,235,008 573,738,880 575,112,256

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 2.0% above its 200-period moving average and is in an upward trend. Volatility is 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 44 periods.

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