NASDAQ Composite (.IXIC) putting it on track to snap a three-session losing streak
The Nasdaq Composite COMP, +0.45% rallied 0.8% in afternoon trade, putting it on track to snap a three-session losing streak, but most stocks are actually trading lower. The number of declining stocks on the Nasdaq exchange outnumbered advancers by a 1,549-to-1,346 margin. Helping lift the index to gains are the more active components, as volume in advancing shares represented 56.1% of total volume.
The Nasdaq Composite’s bounce comes after it dropped 4.9% over the past three sessions to close Monday at the lowest level since Nov. 15, 2017. Meanwhile, on the NYSE the number of advancing stocks outnumbered decliners 1,538 to 1,386 while advancing volume made up 54.9% of total volume. The S&P 500 SPX, +0.01% was up 0.3% while the Dow Jones Industrial AverageDJIA, +0.35% was climbing 165 points, or 0.7%.
Overall, the bias in prices is: Downwards
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 7,165.63.
The projected lower bound is: 6,362.01.
The projected closing price is: 6,763.82.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 11.5488. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 36.55. 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 36 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 -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 sell 5 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 30.178 at 6,783.911. Volume was 13% above average (neutral) and Bollinger Bands were 25% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,998.52 7,255.55 7,505.79
Volatility: 32 35 24
Volume: 622,614,400 622,738,176 549,500,864
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 9.6% below its 200-period moving average and is in an downward 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 bearish on .IXIC and have had this outlook for the last 5 periods.