NASDAQ Composite (.IXIC) rise on tame U.S. inflation
A gauge of world equity markets rose and the dollar eased on Tuesday after a tame reading on U.S. inflation reinforced expectations the Federal Reserve will not raise interest rates anytime soon, while Boeing shares slid for a second day.
U.S. consumer prices rose for the first time in four months in February but the modest pace of the increase resulted in he smallest annual gain in inflation in nearly 2-1/2 years.
“The takeaway from the data was that inflation is in check and that would allow the Fed to remain patient and that is always good for equities,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance in Charlotte, North Carolina.
Boeing Co slumped 6.13 percent to extend Monday’s losses as more countries, including all of the European Union, grounded the company’s 737 MAX planes following a second fatal crash in five months.
Rival airplane manufacturer Airbus SE was the biggest contributor to advancing shares in the FTSEurofirst 300 of leading European shares, rising 1.43 percent, but the index edged lower in choppy trade as investors awaited a Brexit vote.
British Prime Minister Theresa May headed for defeat on her plans to leave the EU as skeptical members of her Conservative Party appeared ready to defy her warning that Britain might not leave the bloc at all if they voted against her.
Sterling fell 0.63 percent to $1.3068.
MSCI’s all-country world index of equity performance in 47 countries rose 0.61 percent, while the pan-European STOXX 600 index lost 0.06 percent.
On Wall Street, the S&P 500 gained 12.98 points, or 0.47 percent, to 2,796.28 and the Nasdaq Composite added 47.61 points, or 0.63 percent, to 7,605.67.
The Dow Jones Industrial Average fell 46.51 points, or 0.18 percent, to 25,604.37, dragged lower by slumping Boeing.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 7,320.93.
The projected upper bound is: 7,841.76.
The projected lower bound is: 7,380.76.
The projected closing price is: 7,611.26.
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 31 white candles and 19 black candles for a net of 12 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 65.3434. This is not an overbought or oversold reading. The last signal was a buy 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 62.69. 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 51 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 94. This is not a topping or bottoming area. The last signal was a buy 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 32.967 at 7,591.031. Volume was 10% below average (neutral) and Bollinger Bands were 65% 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: 7,532.09 7,223.96 7,481.68
Volatility: 16 21 25
Volume: 593,200,384 571,706,944 573,137,280
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 1.5% 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 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 42 periods.