NASDAQ Composite (.IXIC) rebounded from early losses to snap a four-day losing streak

NASDAQ Composite (.IXIC) rebounded from early losses to snap a four-day losing streak

NASDAQ Composite (.IXIC) rebounded from early losses to snap a four-day losing streak

US stocks have rebounded from early losses to snap a four-day losing streak after US President Donald Trump and Treasury Secretary Steven Mnuchin said trade talks between the United States and China were “constructive”.

The benchmark S&P 500 index had dropped as much as 1.6 per cent on Friday but rebounded from its session lows after Mnuchin spoke positively of the two-day negotiations. It added further to gains after Trump echoed that sentiment in a series of tweets.

The index pulled back from the session’s highs, however, after Mnuchin said no further trade talks were planned, according to CNBC.

Even with Friday’s rebound, though, the S&P 500 and the Nasdaq logged their biggest weekly percentage losses of the year.

Recent developments in US-China trade relations, including an increase in US tariffs on $US200 billion ($A286 billion) worth of Chinese goods that went into effect on Friday, have led investors to brace for a potential escalation of the trade dispute between the world’s two biggest economies. That in turn has stoked fears of a global economic slowdown, prompting a flight to low-risk assets such as government bonds.

Yet Friday’s comments from the White House kept some investors hopeful of an eventual trade agreement.

“The market is getting that the statements (from Mnuchin and Trump) are more political than indicative of a change in strategy,” said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York.

“Nothing has changed in terms of our investment thesis. In the short term, China needs a trade deal more than the US. But in the long term, the US needs it more than China. Effectively, that’s a pretty good balance.”

The Dow Jones Industrial Average on Friday rose 114.01 points, or 0.44 per cent, to 25,942.37; the S&P 500 gained 10.68 points, or 0.37 per cent, to 2,881.4; and the Nasdaq Composite added 6.35 points, or 0.08 per cent, to 7,916.94.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,110.13.

The projected lower bound is: 7,739.13.

The projected closing price is: 7,924.63.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 31.3053. This is not an overbought or oversold reading. The last signal was a sell 8 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 45.51. 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 sell 8 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 -155.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 7 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 6.353 at 7,916.940. Volume was 3% above average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
7,881.3147,949.3377,759.3367,916.940 587,099,456

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

Moving Averages: 10-period 50-period 200-period
Close: 8,036.55 7,844.37 7,532.71
Volatility: 16 15 25
Volume: 557,298,944 566,751,360 580,788,672

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 5.1% 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 1 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH