NASDAQ Composite (.IXIC) tech continues to lead the way

NASDAQ Composite (.IXIC) tech continues to lead the way

NASDAQ Composite (.IXIC) tech continues to lead the way

The major indices bounced around a bit today with the trade discussions up in the air, but there were no dramatic moves by the closing bell. The market knew that the Friday deadline wasn’t exactly set in stone and that progress can still be made after this three-day weekend. The worst performance on Friday was the Dow, but it was only down 0.09% (or about 22 points) to 25,964.8 after being lower by more than 100 points at its worst. The index was still up 0.7% for the week.

The best performance was the NASDAQ as tech continues to lead the way. It was up 0.26% on Friday to 8109.5, marking a healthy weekly advance of 2% as names like Apple and Amazon gained more than 5% each over the past five days. The S&P inched higher by 0.01% in the day to 2901.5, but its weekly advance was a more substantial 0.9%.

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 7,783.89.

The projected upper bound is: 8,296.76.

The projected lower bound is: 7,938.18.

The projected closing price is: 8,117.47.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with NASDAQ COMPOSITE), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) 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 88.4802. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 70.53. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 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 117.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 21 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 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 21.174 at 8,109.537. Volume was 3% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
8,079.3128,119.8168,079.3128,109.537 487,910,784

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

Moving Averages: 10-period 50-period 200-period
Close: 7,974.92 7,793.22 7,353.28
Volatility: 8 15 19
Volume: 441,064,768 491,341,440 512,398,880

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 10.3% 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 moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 4 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.

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