NASDAQ Composite (.IXIC), S&P 500 Climb To New Record Intraday Highs
Stocks have moved mostly higher in morning trading on Wednesday, largely offsetting the weakness seen in the previous session. With the upward move, the Nasdaq and the S&P 500 have reached new record intraday highs.
The major averages have seen further upside in recent trading, reaching new highs for the session. The Dow is up 135.76 points or 0.5 percent at 29,367.95, the Nasdaq is up 87.80 points or 0.9 percent at 9,820.55 and the S&P 500 is up 19.62 points or 0.6 percent at 3,389.91.
Easing concerns about the coronavirus outbreak have contributed to the strength on Wall Street after Chinese officials reported the lowest number of newly confirmed cases since late January.
China’s National Health Commission reported 1,749 new cases of the coronavirus, bringing the nationwide total to 74,185. More than 2,000 people have died as a result of the outbreak
A rebound by shares of Apple (AAPL) has also generated some positive sentiment, with the tech giant jumping by 1.4 percent after slumping by 1.8 percent on Tuesday.
Apple warned of weaker than previously forecast second quarter revenue due to the coronavirus outbreak, but traders seem optimistic the impact will only be temporary.
On the U.S. economic front, the Labor Department released a report showing producer prices increased by much more than anticipated in the month of January.
The Labor Department said it producer price index for final demand climbed by 0.5 percent in January after rising by 0.2 percent in December. Economists had expected producer prices to inch up by 0.1 percent.
Excluding a pullback in energy prices and a modest increase in food prices, core producer prices still rose by 0.5 percent in January compared to economist estimates for a 0.2 percent uptick.
A separate report released by the Commerce Department showed a pullback in new residential construction in the month of January.
The Commerce Department said housing starts slumped by 3.6 percent to an annual rate of 1.567 million in January after soaring by 17.7 percent to a revised rate of 1.626 million in December.
Economists had expected housing starts to tumble by 11.4 percent to a rate of 1.425 million from the 1.608 million originally reported for the previous month.
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 9,220.98.
The projected upper bound is: 10,042.78.
The projected lower bound is: 9,641.44.
The projected closing price is: 9,842.11.
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 31 white candles and 19 black candles for a net of 12 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 9 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 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 90.6105. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 18 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 74.32. 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 17 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 114.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 8 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 84.437 at 9,817.180. Volume was 3% above average (neutral) and Bollinger Bands were 66% 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: 9,658.77 9,187.08 8,350.19
Volatility: 10 14 18
Volume: 568,003,264 595,605,440 559,424,640
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 17.6% 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 84 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.