NASDAQ Composite (.IXIC) optimism over a resolution to the trade war between the United States and China

NASDAQ Composite (.IXIC) optimism over a resolution to the trade war between the United States and China

NASDAQ Composite (.IXIC) optimism over a resolution to the trade war between the United States and China

Global stock indexes rose on Thursday as optimism over a resolution to the trade war between the United States and China lifted sentiment, while sterling strengthened amid hopes of a second referendum on Britain’s membership in the European Union.

U.S. Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for Jan. 30, the Wall Street Journal reported on Thursday, citing people familiar with the internal deliberations.

“The market wants to hear some positive trade news. The way it’s acted since that Christmas Eve low, the market is expecting to hear at least something incrementally positive,” said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute in St. Louis.

S&P 500 industrials, which have been sensitive to trade developments, ended up 1.7 percent, among the biggest gains of S&P sectors.

Also boosting the industrials were shares of defense contractors Northrop Grumman Corp and Lockheed Martin Corp, which rose after President Donald Trump unveiled a revamped U.S. missile defense strategy.

The Dow Jones Industrial Average rose 162.94 points, or 0.67 percent, to 24,370.1, the S&P 500 gained 19.86 points, or 0.76 percent, to 2,635.96 and the Nasdaq Composite added 49.77 points, or 0.71 percent, to 7,084.46.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,466.61.

The projected lower bound is: 6,691.42.

The projected closing price is: 7,079.01.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 86.7718. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 58.50. 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 15 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 100. This is not a topping or bottoming area. The last signal was a sell 0 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 11 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 49.770 at 7,084.463. Volume was 17% below average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
7,010.1297,113.9467,003.6177,084.463 518,857,696

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

Moving Averages: 10-period 50-period 200-period
Close: 6,942.29 6,983.81 7,450.86
Volatility: 25 36 25
Volume: 553,707,776 621,632,384 555,344,832

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 4.9% below its 200-period moving average and is in an upward trend. Volatility is high 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 6 periods.

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