NASDAQ Composite (.IXIC) retakes 8,000 as Trump says China trade deal ‘could happen sooner than you think’
U.S. stock-market benchmarks late-morning Wednesday were trading near session highs, with banks, consumer-staples, and discretionary stocks helping to power a rise.
The Dow Jones Industrial Average DJIA, +0.61% was up 140 points, or 0.5%, at 26,950, the S&P 500 index SPX, +0.62% was rising 0.2% at 2,973, with eight of the 11 sectors of the broad-market index in positive territory, while the Nasdaq Composite Index COMP, +1.05% advanced 0.2% at 8,008, retaking a psychologically important level above 8,000.
Stocks briefly dipped when the White House released cal summary of a phone call between President Donald Trump and the Ukrainian president, but quickly bounced back.
Markets have been weighing House Speaker Nancy Pelosi announcement late Tuesday to launch an impeachment inquiry into whether Trump interacted improperly with his Ukrainian counterpart. Market participants were pegging some of the stock-market buoyancy to comments by by Trump at the United Nations general assembly meeting:
“We’ve picked up trillions of dollars and they’ve lost trillions of dollars and they want to make a deal very badly. It could happen. It could happen sooner than you think,” he said, referring to China-U.S. trade negotiations.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 8,365.47.
The projected lower bound is: 7,783.48.
The projected closing price is: 8,074.48.
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 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A piercing line occurred (which indicates that prices moved down on the previous bar, opened even lower, but then closed significantly higher). This implies strength as the momentum appears to be shifting from the bears to the bulls. Note that the higher the close of the white candle (relative to the black candle), the more bullish the Piercing Line pattern.
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 26.7291. This is not an overbought or oversold reading. The last signal was a buy 0 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 50.66. 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 79 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 -135.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 83.757 at 8,077.384. Volume was 5% below average (neutral) and Bollinger Bands were 27% 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: 8,137.22 8,049.04 7,685.66
Volatility: 12 23 23
Volume: 617,789,312 556,317,056 575,111,616
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 5.1% above 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 volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 13 periods.