NASDAQ Composite (.IXIC) surged to a record high after Federal Reserve Chairman Jerome Powell signalled a willingness to cut interest rates to boost flagging economic growth

NASDAQ Composite (.IXIC) surged to a record high after Federal Reserve Chairman Jerome Powell signalled a willingness to cut interest rates to boost flagging economic growth

NASDAQ Composite (.IXIC) surged to a record high after Federal Reserve Chairman Jerome Powell signalled a willingness to cut interest rates to boost flagging economic growth

The tech-heavy Nasdaq Composite surged to a record high Wednesday after Federal Reserve Chairman Jerome Powell signaled a willingness to cut interest rates to boost flagging economic growth.

The 30-stock Dow Jones Industrial Average and S&P 500 also closed higher but did not set records.

Shares jumped after the head of the central bank, in his semi-annual monetary report to federal lawmakers, signaled a rate cut is possible, noting “crosscurrents have reemerged, creating greater uncertainty” in the U.S. economy.

The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 all hit new intraday highs. At one point in the session, the S&P crossed the 3,000 threshold for the first time.

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 7,879.00.

The projected upper bound is: 8,454.70.

The projected lower bound is: 7,951.99.

The projected closing price is: 8,203.34.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 66.7436. This is not an overbought or oversold reading. The last signal was a sell 1 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 66.11. 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 25 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 2 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 22 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 60.803 at 8,202.531. Volume was 11% below average (neutral) and Bollinger Bands were 1% narrower than normal.

Open High Low Close Volume___
8,183.1958,228.5978,160.5648,202.531 508,969,408

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

Moving Averages: 10-period     50-period     200-period
Close: 8,085.89 7,865.71 7,518.31
Volatility: 10 21 26
Volume: 621,596,096 576,699,776 598,923,712

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 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 9.1% 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 16 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH