NASDAQ Composite (.IXIC) rise on trade hopes
North American stock markets gained on Wednesday on a report that China could yet agree to a partial trade deal with the United States despite recent tensions, while the prospect of a last-minute Brexit agreement between the European Union and Britain seemed as remote as ever.
Sterling was little changed against the U.S. dollar after losing nearly 1 per cent over the past two sessions.
China is still open to agreeing to a partial trade deal, Bloomberg reported on Wednesday, despite the recent U.S. blacklisting of Chinese technology firms and reports on visa restrictions from both sides.
“You don’t want to ignore headlines, but at the same time each headline seems to say the same thing – that both sides want to see something happen and both sides are encouraged that something may happen,” said Michael Lorizio, senior fixed income trader at Manulife Investment Management in Boston.
Markets have been wobbly this month on more evidence that the U.S.-China conflict over trade is increasingly damaging the global economy. Stocks have been particularly sensitive to headlines regarding trade.
“Investors are hoping for an interim deal, they aren’t expecting anything big, but are cautiously optimistic,” said Michael Geraghty, equity strategist at Cornerstone Capital Group.
On Wall Street, the Dow Jones Industrial Average rose 182.24 points, or 0.7 per cent, to 26,346.28, the S&P 500 gained 26.41 points, or 0.91 per cent, to 2,919.47 and the Nasdaq Composite added 79.96 points, or 1.02 per cent, to 7,903.74.
Technical Indicators
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,986.08.
The projected upper bound is: 8,201.37.
The projected lower bound is: 7,591.32.
The projected closing price is: 7,896.34.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 59.0227. This is not an overbought or oversold reading. The last signal was a buy 10 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 45.61. 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 89 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 -57. 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 11 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 79.964 at 7,903.742. Volume was 30% below average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
7,895.9637,930.9157,873.5157,903.742 391,063,136
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,920.21 7,984.05 7,740.83
Volatility: 21 25 22
Volume: 499,087,808 554,890,944 562,240,320
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 2.1% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume out of .IXIC (mildly bearish). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 5 periods.
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