NASDAQ Composite (.IXIC) taking a hit as investors pull away from risky tech stocks

NASDAQ Composite (.IXIC) taking a hit as investors pull away from risky tech stocks

NASDAQ Composite (.IXIC) taking a hit as investors pull away from risky tech stocks

The Nasdaq is taking a hit as investors pull away from risky tech stocks.

During trading hours Monday, the tech-heavy index fell by as much as 1.8%. The Dow and S&P 500 fell as low as 0.8% percent each.

The Nasdaq closed down 0.7%, while the Dow closed slightly up. The S&P closed about flat.
Each of the FAANG stocks — Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google -(GOOG) — declined.

The Nasdaq is also vulnerable to the Fed and yields because it includes financial stocks, which could be impacted by higher interest rates, he said. That’s because higher interest rates tend to slow growth, he said. When that happens, people and companies are less likely to borrow from banks.

That doesn’t mean the Nasdaq will continue to fall.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,898.35.

The projected lower bound is: 7,573.49.

The projected closing price is: 7,735.92.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 18.7744. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 32.83. 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 24 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 -226.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 3 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -52.498 at 7,735.949. Volume was 4% above average (neutral) and Bollinger Bands were 14% narrower than normal.

Open High Low Close Volume___
7,747.0987,797.3207,654.8417,735.949 551,100,288

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

Moving Averages: 10-period 50-period 200-period
Close: 7,955.20 7,919.44 7,492.42
Volatility: 13 13 20
Volume: 588,894,656 533,228,768 521,753,440

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 3.3% above 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 2 periods.

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