NASDAQ Composite (.IXIC) snaps a two-day losing streak amid some ugly second-quarter earnings
US stocks finished stronger on Thursday, snapping a two-day losing streak amid some ugly second-quarter earnings.Stocks opened lower but retraced some of their losses as the day went on.
While the S&P 500 and the Nasdaq Composite finished squarely in the green, the Dow only just eked out a gain.The Dow (INDU) closed just 3 points higher.
The S&P 500 (SPX) and the Nasdaq Composite(COMP) finished 0.4% and 0.3% higher.Comments from New York Federal Reserve President John Williams, who said he favored taking preventative measures at the first signs of an economic slowdown, were interpreted as another sign of interest rate cuts on the horizon.Earlier, “sentiment has turned negative towards stocks amid concerns that this earnings season could be a weak one, especially for technology companies whose valuations are still sky-high,” wrote Fawad Razaqzada, technical analyst at Forex.com.Netflix (NFLX), for example, reported earnings after Wednesday’s close, including a massive miss on subscriber growth.
Its shares closed more than 10% lower, marking its worst day in three years.
The streaming business added 2.7 million new users in the second quarter, compared with a forecast of 5 million.Aside from earnings, investors are weighing worries about the health of the economy against the anticipated growth-boosting interest rate cut by the Federal Reserve, expected in for the end of this month.
“But unless growth starts to pick up, central banks’ actions will only help to delay the inevitable: a sizeable correction,” Razaqzada said.
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 7,935.05.
The projected upper bound is: 8,446.64.
The projected lower bound is: 7,977.58.
The projected closing price is: 8,212.11.
A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 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 45.2350. This is not an overbought or oversold reading. The last signal was a sell 1 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 62.49. 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 31 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 35. This is not a topping or bottoming area. The last signal was a sell 2 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 0 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 22.037 at 8,207.243. Volume was 14% below average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,191.80 7,883.33 7,524.55
Volatility: 9 19 26
Volume: 480,346,624 567,254,592 591,615,296
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 9.1% above its 200-period moving average and is in an upward trend. Volatility is low 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 22 periods.
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