NASDAQ Composite (.IXIC) Sell in May and go away? Perhaps investors should have after the start to this month
A somnambulant period that saw equities to or toward record territory appears to be over. It’s still early, but stocks are positioned for their worst month of this trading year.
The current slump in equities—while it may end up being a momentary pause on the escalator to further all-time highs—has assets perceived as risky looking at the worst drops since for a month since December, when a confluence of trade-war worries and an aggressive Federal Reserve combined to help contribute to the ugliest year since the 2008 financial crisis.
Markets bounded lower starting early Monday on the back of renewed fears of a Sino-American trade conflict. U.S. Trade Representative Robert Lighthizer cited “an erosion in commitments by China” in recent negotiations and declared tariffs on Chinese imports would rise to 25% from 10% on Friday, reiterating comments that President Donald Trump made on Sunday. However, China’s top trade negotiator Liu He is scheduled to participate in talks later this week, which is seen as a cause for some positivity.
“This turn of events injects substantial uncertainty into the outcome, forcing investors to now factor in the possibility that a near-term trade deal may not be reached and that tariffs may be increased. Given these developments, we expect significant volatility, wrote Kristina Hooper, chief market strategist at Invesco in a Monday financial blog.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,156.77.
The projected lower bound is: 7,787.11.
The projected closing price is: 7,971.94.
A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.
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 61.0281. This is not an overbought or oversold reading. The last signal was a sell 5 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 48.78. 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 sell 5 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 4 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -159.533 at 7,963.756. Volume was 9% above average (neutral) and Bollinger Bands were 47% 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: 8,096.18 7,821.68 7,531.37
Volatility: 17 15 25
Volume: 535,326,336 569,776,960 578,612,096
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 5.7% 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 81 periods.