NASDAQ Composite (.IXIC) , S&P 500 Climb To New Record Closing Highs
Stocks moved mostly higher over the course of the trading day on Monday, rebounding following the pullback seen in the previous session. With the upward move on the day, the Nasdaq and the S&P 500 ended the session at new record closing highs.
The Nasdaq and the S&P 500 saw further upside going into the close, while the narrower Dow posted a more modest gain. While the Dow rose 83.28 points or 0.3 percent to 28,907.05, the Nasdaq jumped 95.07 points or 1 percent to 9,273.93 and the S&P 500 advanced 22.78 points or 0.7 percent to 3,288.13.
The strength on Wall Street came amid continued optimism about impact of the phase one U.S.-China trade deal due to be signed later this week.
Chinese Vice Premier Liu He is scheduled to visit Washington to sign the deal, which is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.
Stocks saw further upside after various media reports said the Treasury Department plans to drop its designation of China as a “currency manipulator” ahead of the signing of the deal.
A report from the Wall Street Journal said the trade agreement will include a section on Chinese currency practices that addresses many of the concerns raised when the U.S. applied the manipulator designation last August.
The news drew criticism from Senate Minority Leader Chuck Schumer, D-N.Y., who accused President Donald Trump of caving to Chinese President Xi Jinping.
“When it comes to the president’s stance on China, Americans are getting a lot of show and very little results,” Schumer said in a statement.
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 8,767.29.
The projected upper bound is: 9,434.53.
The projected lower bound is: 9,152.13.
The projected closing price is: 9,293.33.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 91.2794. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 77.13. 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 6 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 161.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 19 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 95.070 at 9,273.932. Volume was 10% above average (neutral) and Bollinger Bands were 18% 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: 9,095.71 8,720.66 8,168.60
Volatility: 13 10 18
Volume: 594,233,088 570,148,544 550,195,264
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 13.5% 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 very strong flows of volume into .IXIC (bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 59 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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