NASDAQ Composite (.IXIC) Snaps Win Streak
Despite paring steeper losses, the Dow ultimately closed in the red. Renewed coronavirus fears and weak guidance from Cisco Systems (CSCO) weighed heavy on investors, although the blue-chip index did bounce off its more than 200-point session lows. The S&P 500 and Nasdaq nabbed fresh record highs and worked their way into positive territory in the afternoon, but ultimately finished lower as well, snapping their three-day win streaks.
The Dow Jones Industrial Average (DJI – 29,423.31) finished 128.1 points, or 0.4% lower for the day. Walmart (WMT) paced the 10 winners with a 1.4% gain, while CSCO fell to the bottom of the barrel on a 5.2% drop.
The S&P 500 Index (SPX – 3,373.94) shed 5.5 points, or 0.2%, while the Nasdaq Composite (IXIC – 9,711.97) gave back 14 points or 0.1%. Each index touched fresh record highs of 3,385.09 and 9,748.32, respectively.
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 9,120.91.
The projected upper bound is: 9,936.32.
The projected lower bound is: 9,533.38.
The projected closing price is: 9,734.85.
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 30 white candles and 20 black candles for a net of 10 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 84.6651. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 70.71. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 14 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 15 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -13.994 at 9,711.968. Volume was 2% below average (neutral) and Bollinger Bands were 39% wider 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: 9,519.89 9,114.62 8,325.03
Volatility: 19 14 19
Volume: 593,517,696 596,342,592 559,280,320
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 16.7% 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 81 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.