NASDAQ Composite (.IXIC) Stocks Reach New Highs On Positive Economic Data

NASDAQ Composite (.IXIC) Stocks Reach New Highs On Positive Economic Data

NASDAQ Composite (.IXIC) Stocks Reach New Highs On Positive Economic Data

  • NASDAQ Composite – +0.36% Dow +0.51% S&P 500 +0.38% Russell 2000+0.35%
  • NASDAQ Advancers: 1321  Decliners: 950
  • Today’s Volume +1.07%
  • MBA mortgage applications rose 0.03% in the week ending September 28th after rising 2.9% the prior week
  • Private-sector employment soared in September, as employers added 230,000 jobs, Automatic Data Processing Inc. reported Wednesday. This is the highest since February. The gain was well above forecasts from analysts, who had expected on average an increase of 179,000. August’s gain was upwardly revised to show 168,000 growth instead of a previously estimated 163,000.  Details of ADP’s report showed that small firms added 56,000 jobs in September, medium-sized businesses added 99,000 to large companies added 75,000. The ADP report is often viewed as a proxy for the Non-Farm Payrolls report due out on Friday
  • September US Markit PMI – Services came in at  53.5 vs. consensus 53. The previous reading was 52.9
  • September US ISM Non-Manufacturing Index  61.6 vs. consensus 58.0; September New Orders 61.6 vs. 60.4 in August
  • There is a fair amount of Fed speak today. We have already heard from Chicago Fed President Charles Evans and Richmond Fed President Thomas Barkin with no apparent market moving repercussions. Fed Chair Jerome Powell is due to appear at The Atlantic Festival in Washington DC. This afternoon Governor Lael Brainard, will be in Chicago at the FedPayments Improvement Community Forum
  • Congratulations to Upwork (UPWK) who priced their offering of 12.48 million shares at $15.00 last night. The stock opened the day at $23.00

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,188.42.

The projected lower bound is: 7,869.12.

The projected closing price is: 8,028.77.

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.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 30.8145. This is not an overbought or oversold reading. The last signal was a buy 16 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 55.22. 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 21 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 61. This is not a topping or bottoming area. The last signal was a sell 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 25.538 at 8,025.085. Volume was 31% above average (neutral) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
8,034.6458,053.9348,012.0268,025.085 693,986,496

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

Moving Averages: 10-period 50-period 200-period
Close: 8,015.65 7,921.79 7,480.00
Volatility: 8 13 19
Volume: 668,180,224 524,556,704 519,533,984

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 7.3% 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 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 4 periods.

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