NASDAQ Composite (.IXIC) plunges by about 4% in late-session trade

NASDAQ Composite (.IXIC) plunges by about 4% in late-session trade

NASDAQ Composite (.IXIC) plunges by about 4% in late-session trade

Selling on the NYSE on Tuesday afternoon has reached panic-like proportions, as the exchange’s Arms Index rose. The Arms is a volume-weighted breadth measure, that tends to rise when the broader market falls, as the intensity of the selling in declining stocks is usually greater than the intensity of buying in rising stocks. Values above 2.000 are considered panic-like activity.

The NYSE ARMS index showed 2,507 decliners for 445 advancers and was at 2.497, according to FactSet data. So far, selling has been broad based, with the the Dow Jones Industrial Average DJIA, -3.10% trading 775 points, or 3%, lower, and threatening to notch its worst day since March 22. Meanwhile, the S&P 500 index SPX, -3.24% was down 3.7% at 2,702, while the Nasdaq Composite Index COMP, -3.80% was down 3.8% at 7,165.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,528.29.

The projected lower bound is: 6,755.17.

The projected closing price is: 7,141.73.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 22 white candles and 28 black candles for a net of 6 black 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 68.6524. This is not an overbought or oversold reading. The last signal was a sell 0 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 46.00. 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 27 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 48. 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 4 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -283.086 at 7,158.426. Volume was 21% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
7,407.9467,421.1077,150.1067,158.426 695,884,544

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

Moving Averages: 10-period 50-period 200-period
Close: 7,147.98 7,435.34 7,519.46
Volatility: 35 34 23
Volume: 576,452,352 618,177,728 544,841,920

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 4.8% 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 3 periods.

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