NASDAQ Composite (.IXIC) Poised For New Highs
Friday’s mid-year closes provided important inputs to my proprietary analytics. The results include monthly value levels for July, risky levels for the third quarter–which are at new highs for the Dow, SPX and Nasdaq–and semiannual pivots in play until the end of 2019. The averages straddle annual pivots that were based upon the December 31 closes and were magnets in the first half of 2019.
Semiannual Levels: The Dow, S&P, Nasdaq, Transports and Russell 2000 straddle semiannual pivots for the second half at 27,266, 2,955.6, 7,999, 10,720 and 1,572.85, respectively. This indicates that the second half of 2019 will feature reversal-oriented trading.
Third Quarter Levels: These are risky levels and the maximum upside at 28,529 Dow, 3,063.5 SPX, 8,614 Nasdaq, 11,136 Transports and 1,677.28 Russell 2000. New highs are possible for the Dow, SPX and Nasdaq, but not for Transports or Russell 2000.
Key Levels for July: Monthly value levels for July are 26,066 Dow, 2,881.9 SPX, 7,821 Nasdaq, 10,350 Transports and 1,530.00 Russell 2000. Buy weakness to these levels for a trade, not new long-term positions.
Annual Pivots Remain At: 25,819 Dow, 2,867.1 SPX, 7,370 Nasdaq, 10,976 Transports and 1,590.65 Russell 2000. Each of these levels were magnets in the first half of 2019 and remain in play in the second half.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,254.99.
The projected lower bound is: 7,757.91.
The projected closing price is: 8,006.45.
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.0963. This is not an overbought or oversold reading. 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 59.65. 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 18 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 61. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 38.486 at 8,006.244. Volume was 203% above average (trending) and Bollinger Bands were 48% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,964.37 7,859.47 7,512.48
Volatility: 14 20 26
Volume: 723,531,584 579,047,744 600,261,696
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.
NASDAQ COMPOSITE is currently 6.6% above 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 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 9 periods.
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