NASDAQ Composite (.IXIC) rises on tech gains, trade hopes

NASDAQ Composite (.IXIC) rises on tech gains, trade hopes

NASDAQ Composite (.IXIC) rises on tech gains, trade hopes

U.S. stocks rose on Wednesday as gains in chipmaker Micron boosted the technology sector and comments from Treasury Secretary Steven Mnuchin fueled hopes that the United States and China were making progress in their trade talks.

“We were about 90% of the way there (with a deal) and Ithink there’s a path to complete this,” Mnuchin said in an interview to CNBC.

Market participants are hoping for a speedy resolution of differences between the two sides as their bitter trade war takes a toll on global growth.

President Donald Trump said earlier in the day it was”absolutely possible” he would emerge from a meeting with Chinese leader Xi Jinping with a deal that would keep him from imposing tariffs he had threatened to put on China.

Trump is expected to meet with Xi at the G20 summit in Japan this weekend. It will be the first time the two leaders have had a face-to-face meeting since trade talks between their countries collapsed in May.

“The tariff war remains a major headwind for the global economy,” said Craig Erlam, senior market analyst at OANDA in London.

“I’m optimistic that we’ll see progress at the G20, at least enough to delay further tariffs being imposed which is surely a positive for markets.”

Micron Technology Inc MU.O jumped 14.2%, lifting the Philadelphia Semiconductor index .SOX 3.5% higher.

The company said it had resumed some shipments to Chines etelecoms equipment maker Huawei Technologies Co Ltd HWT.UL and still expected demand for its chips to recover later this year.

Tech stocks .SPLRCT were the biggest gainers among the 11 major S&P sectors, with a 1.49% jump, while the trade-sensitive industrial index .SPLRCI rose 0.35%.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,155.63.

The projected lower bound is: 7,661.67.

The projected closing price is: 7,908.65.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 21.8560. This is not an overbought or oversold reading. The last signal was a sell 2 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 54.57. 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 16 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 25. This is not a topping or bottoming area. The last signal was a sell 1 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 13 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 25.254 at 7,909.971. Volume was 5% below average (neutral) and Bollinger Bands were 60% wider than normal.

Open High Low Close Volume___
7,933.9257,974.2827,903.0667,909.971 537,922,304

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 7,930.34 7,859.92 7,512.09
Volatility: 15 20 26
Volume: 587,827,840 554,877,888 593,736,000

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 5.3% 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 7 periods.

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