NASDAQ Composite (.IXIC) small gains to start out the shortened trading week

NASDAQ Composite (.IXIC) small gains to start out the shortened trading week

NASDAQ Composite (.IXIC) small gains to start out the shortened trading week

US stocks closed slightly higher Tuesday after the long holiday weekend as positive earnings from retail giant Walmart ( WMT ) and optimism over the trade talks between the US and China helped boost equity indexes.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index all scratched out small gains to start out the shortened trading week. President Donald Trump said Tuesday afternoon that the talks with China were going well and that the early March deadline for additional tariffs kicking in wasn’t a “magical date.”

After meeting in China last week, talks between the US and China are in Washington this week as the two economic powers try to resolve their trade differences.

The Nasdaq led the major market gauges with a slight 0.2% gain. All the market’s key gauges closed off their highs for the day. Basic materials, utilities and consumer staples stocks helped keep the S&P 500 afloat.

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 7,174.22.

The projected upper bound is: 7,821.13.

The projected lower bound is: 7,165.53.

The projected closing price is: 7,493.33.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 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 89.5831. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 67.21. 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 36 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 118.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 32 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 14.356 at 7,486.766. Volume was 15% below average (neutral) and Bollinger Bands were 24% narrower than normal.

Open High Low Close Volume___
7,450.7507,507.7927,450.2737,486.766 524,355,136

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

Moving Averages: 10-period 50-period 200-period
Close: 7,389.29 6,998.97 7,467.55
Volatility: 13 31 25
Volume: 532,638,048 608,472,000 565,015,104

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 0.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 27 periods.

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