NASDAQ Composite (.IXIC) set to snap six-day losing streak
U.S. stocks rose on Tuesday as China stepped in to stabilize the yuan, soothing concerns that currencies would be the latest weapon in the long-drawn trade war, a day after Wall Street suffered their sharpest one-day percentage drops of the year.
China’s overnight intervention came after the U.S. Treasury Department labeled Beijing as a currency manipulator as it let the yuan slide to a more than decade low on Monday.
A steep fall in the Chinese currency had led the benchmark S&P 500 .SPX and Nasdaq .IXIC record their sixth straight session of declines, losing at least 3% each in the previous session.
China’s move to fix the yuan at a slightly stronger rate and White House economic adviser Larry Kudlow’s comment that President Donald Trump was planning to host a Chinese delegation for further talks in September allayed fears of a further escalation in trade war.
The S&P 500, still reeling from last week’s shock when President Donald Trump vowed to slap a 10% tariff on a further $300 billion in Chinese imports, is 5.6% away from its all-time high hit last month.
Among other stocks, Take-Two Interactive Software Inc (TTWO.O) jumped 9.5% after the videogame publisher raised its full-year revenue forecast.
The materials sector .SPLRCM dropped 1%, weighed by a more than 13% fall in scent and flavor maker International Flavors & Fragrances (IFF.N) and fertilizer company Mosaic Co (MOS.N) after the two companies cut their full-year earnings forecasts.
Payments processor Mastercard Inc (MA.N) gained 2.1% after it said it would buy a majority of the corporate services businesses of Scandinavian payments group Nets for about $3.19 billion.
Walt Disney Co (DIS.N) was up 0.8% ahead of its results after market close.
Advancing issues outnumbered decliners by a 1.20-to-1 ratio on the NYSE and by a 1.03-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 23 new lows, while the Nasdaq recorded 17 new highs and 166 new lows.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 8,074.49.
The projected lower bound is: 7,599.89.
The projected closing price is: 7,837.19.
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 25 white candles and 25 black 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 17.0216. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 37.03. 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 44 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 -180.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 13 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 107.225 at 7,833.265. Volume was 2% above average (neutral) and Bollinger Bands were 17% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,130.71 7,977.65 7,553.24
Volatility: 26 19 26
Volume: 592,591,232 573,606,336 587,975,168
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 3.7% above its 200-period moving average and is in an downward 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 bearish on .IXIC and have had this outlook for the last 3 periods.