NASDAQ Composite (.IXIC) retreats below 50-day moving average as stock market skids lower early Tuesday

NASDAQ Composite (.IXIC) retreats below 50-day moving average as stock market skids lower early Tuesday

NASDAQ Composite (.IXIC) retreats below 50-day moving average as stock market skids lower early Tuesday

The Nasdaq Composite traded solidly lower early Tuesday, with the slump in the technology-laden index pushing it beneath its 50-day moving average.

The Nasdaq COMP, -0.04% was down 1% at 8,011, or down 76 points, in recent action and had touched an intrday low at 8,001.68.

The index’s 50-day moving average, viewed by technical analysts as a gauge of short-term momentum in an asset, stands at 8,054.51, according to FactSet data.

Market watchers tend to view moving averages as the demarcation line between bullish and bearish momentum in an asset.

The broader market, meanwhile, was seeing a slightly less brisk tilt lower, with the S&P 500 index SPX, +0.03% off 0.6% at 2,960, while the Dow Jones Industrial Average DJIA, +0.28% slipped 0.2% in Tuesday action.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,373.50.

The projected lower bound is: 7,797.92.

The projected closing price is: 8,085.71.

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 24 white candles and 26 black candles for a net of 2 black 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 83.5081. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 54.94. 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 68 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 74. This is not a topping or bottoming area. The last signal was a sell 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -3.282 at 8,084.155. Volume was 9% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
8,049.9818,086.5318,001.6858,084.155 609,350,336
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,986.26 8,056.12 7,631.59
Volatility: 17 23 24
Volume: 508,174,624 527,304,000 573,722,304

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 5.9% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 2 periods.

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