NASDAQ Composite (.IXIC) rebounds on WHO coronavirus remarks
US stocks rebounded late to close higher on Thursday after the World Health Organization (WHO) declared the China coronavirus a global emergency, while earnings painted a mixed picture.
After the Centres for Disease Control and Prevention reported the first US incident of person-to-person spread of the virus, the WHO said recent weeks have seen an unprecedented outbreak, met by an unprecedented response. It said it was not recommending limiting trade or travel to China.
Facebook shares slumped 6.14 per cent after the social media company warned of slowing growth as its business matured and it reported a surge in quarterly expenses.
The decline weighed on the S&P communication services index , which lost 0.79 per cent. Defensive sectors such as utilities and consumer staples, considered safer in times of economic uncertainties, advanced.
The main US stock indexes are on course for their second straight week of declines as the virus has disrupted global travel and forced several companies to suspend operations in China.
The Dow Jones Industrial Average rose 124.99 points, or 0.43 per cent, to 28,859.44, the S&P 500 gained 10.26 points, or 0.31 per cent, to 3,283.66 and the Nasdaq Composite added 23.77 points, or 0.26 per cent, to 9,298.93.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 9,487.93.
The projected lower bound is: 9,140.27.
The projected closing price is: 9,314.10.
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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white 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 53.1710. This is not an overbought or oversold reading. The last signal was a sell 5 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 60.73. 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 4 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 -32. This is not a topping or bottoming area. The last signal was a sell 5 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 4 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 23.770 at 9,298.934. Volume was 4% above average (neutral) and Bollinger Bands were 3% narrower 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: 9,320.11 8,928.49 8,252.81
Volatility: 17 12 18
Volume: 607,916,160 586,102,144 555,450,496
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 12.7% above its 200-period moving average and is in an upward 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 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 71 periods.
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