NASDAQ Composite (.IXIC) strong performance of large-cap technology stocks
The Dow ended in positive territory for second-straight day. The blue-chip index closed above 25,000 for the first time since Oct 23. Notably, twenty two components of the 30-stock index closed in the green while the remaining eight finished in the red.
The S&P 500 also closed in the green led by a 2.4% rise in Technology Select Sector SPDR (XLK) and 2.1% gain in Communication Services Select Sector SPDR (XLC). Notably, eight out of total 11 sectors of the benchmark index closed in the green. For the first time since Sep 20, the broad-market index finished on a winning note for two successive days.
Meanwhile, the tech-laden Nasdaq Composite closed in positive territory for two consecutive days due to strong performance of large-cap technology stocks.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 7,653.93.
The projected upper bound is: 7,739.70.
The projected lower bound is: 7,110.21.
The projected closing price is: 7,424.96.
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 22 white candles and 28 black candles for a net of 6 black candles.
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 77.0001. This is not an overbought or oversold reading. The last signal was a buy 5 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 47.39. 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 buy 5 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 10. This is not a topping or bottoming area. The last signal was a buy 1 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 0 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 128.158 at 7,434.057. Volume was 27% above average (neutral) and Bollinger Bands were 75% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,290.10 7,768.40 7,519.34
Volatility: 41 27 23
Volume: 678,323,008 597,122,496 540,606,656
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 is currently 1.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 20 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.