NASDAQ Composite (.IXIC) stocks climb to fresh records on revived hope for U.S. – China trade deal
U.S. stocks closed at fresh record highs on Friday on revived hopes for a U.S. – China trade deal despite mixed economic data.
The Dow hit 28,000 for the first time after posting a fourth straight week of gains, while the S&P500 index rallied for a sixth week, its longest winning streak since November 2017. How are the major benchmarks faring?
The Dow Jones Industrial Average (DJIA) rose 222.93 points, or 0.8%, to 28,004.89, while the S&P 500 index (SPX) gained 23.83 points, or 0.77%, to trade at 3,120.46. The Nasdaq Composite index (COMP) was up 61.81 points, or 0.73%, to 8,540.83.
Year-to-date the Dow is up 20.05%, the S&P 500 has gained 24.48% and the Nasdaq 28.72%
On Thursday, the Dow ended marginally lower, falling 1.63 points to 27,781.96, a day after eking out a record close. The S&P 500, meanwhile, tiptoed further into uncharted territory with a rise of 2.59 points, or 0.1%, to end at 3,096.63 — it’s 21st record close of 2019. The Nasdaq Composite edged 3.08 points lower, a decline of less than 0.1%, to finish at 8,479.02.
What’s driving the market?
Equities markets have posted gains this week as investors remain hopeful that positive developments in U.S.-China trade relations will soon justify recent record highs for the major stock indexes.
“Investors continue to hang onto every word associated with the U.S.-China trade war,” said Russ Mould, investment director at AJ Bell. “White House economic adviser Larry Kudlow reportedly said that current negotiations between the two countries are ‘very constructive’, which was enough to drive stock markets up across the U.K., mainland Europe and most of Asia.”
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 8,221.27.
The projected upper bound is: 8,733.83.
The projected lower bound is: 8,365.34.
The projected closing price is: 8,549.58.
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 29 white candles and 21 black candles for a net of 8 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 79.4261. This is not an overbought or oversold reading. The last signal was a sell 2 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 71.12. 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 buy 116 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 25 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 61.813 at 8,540.829. Volume was 11% above average (neutral) and Bollinger Bands were 6% 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: 8,464.06 8,170.67 7,927.00
Volatility: 6 15 18
Volume: 536,242,144 531,514,304 552,029,632
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 7.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 21 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.