NASDAQ Composite (.IXIC) optimism over signs of progress in U.S.-China trade talks

NASDAQ Composite (.IXIC) optimism over signs of progress in U.S.-China trade talks

NASDAQ Composite (.IXIC) optimism over signs of progress in U.S.-China trade talks

U.S. stocks rose for a fourth straight day on Wednesday, as gains in energy and technology stocks added to optimism over signs of progress in U.S.-China trade talks.

The S&P technology index rose 1.07 percent, boosted by Microsoft Corp, Apple Inc and chipmakers.

Officials from the United States and China ended their talks in Beijing that lasted longer than expected and officials said details will be released soon, raising hopes that an all-out trade war that could badly disrupt the global economy can be averted.

Hopes of a trade deal between the world’s two largest economies, strong U.S. jobs data and Federal Reserve chair Jerome Powell’s dovish remarks on interest rates have helped lift the S&P 500 9.7 percent from the 20-month low it hit around Christmas.

“There’s a solid uptrend that’s come off the Christmas Eve downturn. So any development that looks like it might be leading to an eventual resolution will be helpful to the markets,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

At 9:57 a.m. ET, the Dow Jones Industrial Average was up 160.12 points, or 0.67 percent, at 23,947.57. The S&P 500 was up 11.05 points, or 0.43 percent, at 2,585.46 and the Nasdaq Composite was up 43.77 points, or 0.63 percent, at 6,940.77.

Amazon.com Inc, now the most valuable U.S. company that fueled the market’s recent surge, slipped.

Apple Inc edged 0.5 percent higher despite a Nikkei Asian Review report that the company had reduced planned production for its three new iPhone models for the January-March quarter.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,353.17.

The projected lower bound is: 6,546.53.

The projected closing price is: 6,949.85.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 94.7167. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 54.67. 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 9 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 159.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 60.078 at 6,957.076. Volume was 8% below average (neutral) and Bollinger Bands were 39% wider than normal.

Open High Low Close Volume___
6,923.0576,985.2246,899.5586,957.076 577,671,296

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

Moving Averages: 10-period 50-period 200-period
Close: 6,689.95 7,013.20 7,451.09
Volatility: 43 37 26
Volume: 613,467,904 645,596,928 557,945,088

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% 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 0 periods.

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