NASDAQ Composite (.IXIC) reclaimed some of the ground lost

NASDAQ Composite (.IXIC) reclaimed some of the ground lost

NASDAQ Composite (.IXIC) reclaimed some of the ground lost

U.S. stocks on Tuesday reclaimed some of the ground lost in the prior day’s steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.-China trade rhetoric.

All three major U.S. indexes closed in the black, although they pared gains late in the day and clawed back less than half of Monday’s losses, which were the largest one-day percentage drops in months. The bellwether S&P 500 remains nearly 4% below its all-time high reached two weeks ago.

Investors’ nerves were calmed after U.S. President Donald Trump referred to the escalating trade war with China as “a little squabble,” and added, “We have a good dialogue going.”

Beijing echoed that sentiment. A Chinese Foreign Ministry spokesman told reporters: “My understanding is that China and the United States have agreed to continue pursuing relevant discussions.”

“(Today) was a good buying opportunity in terms of how low prices got yesterday,” said Jim Bell, chief investment officer at Bell Investment Advisors in Oakland, California. “And now Trump is trying to smooth the waters.

“I assume a lot of people still take the president seriously when he makes these comments,” Bell added. “There’s still strong support for his policies and people want to believe what he’s saying, that it’s going to end well.”

Boeing Co provided the biggest boost to the Dow, rising 1.7% as tariff-vulnerable industrials buoyed the blue chip index.

Ralph Lauren Corp fell 3.7% after the apparel company posted quarterly results that included disappointing North American sales.

Uber Technologies and ride-hailing rival Lyft Inc reversed course after their post-debut slides. Their stocks advanced 7.7% and 4.9%, respectively.

Uber’s shares rose another 6.4 percent in after-the bell trading after a U.S. labor agency said it had concluded that the company’s drivers were independent contractors, not employees.

Walt Disney Co announced it would take control of Comcast Corp’s Hulu in a move to challenge Netflix and others in the global video streaming war.

Disney stock climbed 1.4%, while Comcast gained 1.5%. Netflix edged up 0.1%.

The Dow Jones Industrial Average rose 207.06 points, or 0.82%, to 25,532.05, the S&P 500 gained 22.54 points, or 0.80%, to 2,834.41, and the Nasdaq Composite added 87.47 points, or 1.14%, to 7,734.49.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 8,050.29.

The projected lower bound is: 7,603.83.

The projected closing price is: 7,827.06.

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 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 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 28.1676. This is not an overbought or oversold reading. The last signal was a sell 11 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 43.96. 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 11 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 -95. 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 10 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 87.653 at 7,822.147. Volume was 11% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
7,682.7997,838.7177,682.2417,822.147 503,474,272

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

Moving Averages: 10-period 50-period 200-period
Close: 7,926.23 7,853.45 7,531.12
Volatility: 27 18 25
Volume: 564,517,760 564,464,640 581,646,848

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 3.9% 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 4 periods.


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