NASDAQ Composite (.IXIC) reason to feel better about their rebounds

NASDAQ Composite (.IXIC) reason to feel better about their rebounds

NASDAQ Composite (.IXIC) reason to feel better about their rebounds

The major indexes extended gains Tuesday afternoon in a broad advance, and the Nasdaq composite and S&P 500 today have a reason to feel better about their rebounds.

Indexes gapped up at the open and have trended higher all day, a good sign after the market on Monday gave back the bulk of its gains.

The Nasdaq led with a 2.3% vault, as the beaten-up technology sector spearheaded the market surge. Software and semiconductors ranked among Tuesday’s best sectors. The iShares Nasdaq Biotech ETF (IBB) rallied 3.5%, giving the composite more fuel.

Volume was higher on the Nasdaq and nearly unchanged on the NYSE compared with the same time on Monday. Breadth was bullish: Advancers topped decliners by 11 to 2 on the NYSE and by 11 to 3 on the Nasdaq.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 7,747.21.

The projected upper bound is: 7,876.20.

The projected lower bound is: 7,406.21.

The projected closing price is: 7,641.21.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 24 white candles and 26 black candles for a net of 2 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 50.7931. This is not an overbought or oversold reading. The last signal was a buy 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 43.35. 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 2 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 -52. This is not a topping or bottoming area. The last signal was a buy 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 214.745 at 7,645.489. Volume was 12% above average (neutral) and Bollinger Bands were 134% wider than normal.

Open High Low Close Volume___
7,501.7837,658.1357,493.4447,645.489 604,949,696

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

Moving Averages: 10-period 50-period 200-period
Close: 7,649.12 7,891.01 7,509.46
Volatility: 36 19 21
Volume: 649,147,584 549,089,792 530,218,656

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 1.8% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 8 periods.

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