NASDAQ Composite (.IXIC) Stocks Close Lower After Federal Reserve Boosts Rates

NASDAQ Composite (.IXIC) Stocks Close Lower After Federal Reserve Boosts Rates

NASDAQ Composite (.IXIC) Stocks Close Lower After Federal Reserve Boosts Rates

Major market averages closed lower Wednesday, dragged down by financial and energy stocks, as the Federal Reserve raised interest rates and removed “accommodative” from its statement on monetary policy.

The Dow Jones industrial Average, S&P 500 and Nasdaq Composite Index slumped modestly in a session where the Federal Open Market Committee took center stage. The FOMC raised its federal funds rate by 0.25% to a target of 2% to 2.25% after its two-day meeting, as expected.

What was unexpected was the Fed removing any reference in its statement saying that monetary policy remains “accommodative.”

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,150.92.

The projected lower bound is: 7,835.22.

The projected closing price is: 7,993.07.

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 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with NASDAQ COMPOSITE). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 58.1947. This is not an overbought or oversold reading. The last signal was a buy 11 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 53.46. 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 16 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 83. This is not a topping or bottoming area. The last signal was a sell 16 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 sell 13 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -17.105 at 7,990.366. Volume was 0% above average (neutral) and Bollinger Bands were 36% narrower than normal.

Open High Low Close Volume___
8,011.6838,067.0317,982.7657,990.366 522,526,368

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,983.20 7,902.44 7,451.28
Volatility: 13 13 19
Volume: 638,875,584 510,932,352 521,692,256

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 7.2% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on .IXIC and have had this outlook for the last 0 periods.

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