NASDAQ Composite (.IXIC) Regain Composure Wednesday as Focus Shifts Back to Earnings
Stocks closed higher Wednesday as Wall Street sidestepped early pressure from stalled US/China trade talks and the lingering government shutdown to focus on an outpouring of bullish corporate quarterly results.
Stocks were kept afloat early in the day by upbeat quarterly results from Dow component stocks International Business Machines ( IBM ), Proctor & Gamble ( PG) and United Technologies ( UTX ), setting the blue-chip index up for a triple-digit gain at the open.
Investors were spooked, however, by warnings from White House chief economist, Kevin Hassett, that the partial government shutdown could result in zero growth this quarter. Coupled with the lack of progress towards a US/China trade deal and impasse in Congress towards the shutdown, the major indices quickly lost altitude and drifted into the red.
Stocks managed to claw back into the green, beginning the rebound at mid-day. The S&P 500 was powered higher by shares of consumer staples companies and utilities.
Data released this morning showed that housing prices were higher in November and manufacturing in the southeast improved from December. The Richmond Fed manufacturing index climbed to negative 2 from negative 8 the month prior, while the FHFA house price index increased a slightly better-than-expected 0.4%.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 7,397.47.
The projected lower bound is: 6,632.26.
The projected closing price is: 7,014.87.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 55.1897. This is not an overbought or oversold reading. The last signal was a sell 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 54.64. 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 18 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 53. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 14 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 5.411 at 7,025.767. Volume was 12% below average (neutral) and Bollinger Bands were 34% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,016.69 6,962.37 7,451.71
Volatility: 19 36 25
Volume: 543,870,592 622,731,008 556,397,952
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 5.7% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 9 periods.
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