NASDAQ Composite (.IXIC) , S&P 500 Close Modestly Higher, Dow Nearly Unchanged

NASDAQ Composite (.IXIC) , S&P 500 Close Modestly Higher, Dow Nearly Unchanged

NASDAQ Composite (.IXIC) , S&P 500 Close Modestly Higher, Dow Nearly Unchanged

Stocks showed a notable move to the upside in early trading on Tuesday but gave back some ground over the course of the session. The major averages pulled back well off the record intraday highs set early in the session, although the Nasdaq and the S&P 500 still ended the day at new record closing highs.

While the Nasdaq edged up 10.55 points or 0.1 percent to 9,638.94 and the S&P 500 rose 5.66 points or 0.2 percent to 3,357.75, the Dow spent the latter part of the session bouncing back and forth across the unchanged before closing down 0.48 points or less than a tenth of a percent at 29,276.34.

The early upward move on Wall Street came as traders continued to shrug off concerns about the economic impact of the deadly coronavirus outbreak.

Several companies have already warned about the impact of the virus, but traders seem confident the U.S. economy is strong enough to withstand the negative effects.

Recent reports suggesting the rate of growth in coronavirus infections has slowed also generated optimism Chinese efforts to contain the outbreak are working.

Federal Reserve Chairman Jerome Powell said during testimony before the House Financial Services Committee that the central bank is closely monitoring the coronavirus outbreak but also highlighted the resilience of the U.S. economy.

In prepared remarks, Powell noted some of the uncertainties around trade have diminished following the signing of the phase one U.S.-China trade deal but cautioned risks to the outlook remain.

“In particular, we are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy,” Powell said.

However, Powell pointed out that the U.S. economy has recently appeared resilient to global headwinds, with economic activity increasing at a moderate pace over the second half of last year.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 9,864.40.

The projected lower bound is: 9,450.84.

The projected closing price is: 9,657.62.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.

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 85.4453. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 69.02. 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 sell 12 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 3 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 10.554 at 9,638.942. Volume was 2% above average (neutral) and Bollinger Bands were 17% wider than normal.

Open     High      Low     Close     Volume___
9,680.8909,714.7389,617.2099,638.942 567,798,592
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,433.51 9,070.53 8,309.13
Volatility: 19 14 19
Volume: 592,218,624 590,879,168 558,744,000

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 16.0% 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 79 periods. 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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