NASDAQ Composite (.IXIC) tech sector’s been out of favor for several weeks

NASDAQ Composite (.IXIC) tech sector’s been out of favor for several weeks

NASDAQ Composite (.IXIC) tech sector’s been out of favor for several weeks

The Nasdaq Composite climbed out of correction territory late Tuesday, as major tech stocks recovered from an earlier rout.

Earlier Tuesday, the index tanked as much as 2.8 percent to trade 10.7 percent below its all-time intraday high of $8,133.30, hit on Aug. 30. At one point, the composite was down 8.3 percent month-to-date, on pace for its worst month since November 2008 when it shed 10.8 percent.

The Nasdaq recovered to close just 0.4 percent down.

Major tech companies had accounted for nine of the top 10 stocks weighing negatively on the Nasdaq at its lowest point during the session — yielding only for Pepsi to slip in among the biggest losers.

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 7,728.03.

The projected upper bound is: 7,673.07.

The projected lower bound is: 7,186.72.

The projected closing price is: 7,429.90.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

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 29.1685. This is not an overbought or oversold reading. The last signal was a buy 6 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 36.13. 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 7 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 -91. This is not a topping or bottoming area. The last signal was a buy 5 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 14 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -31.090 at 7,437.539. Volume was 24% above average (neutral) and Bollinger Bands were 132% wider than normal.

Open High Low Close Volume___
7,328.5467,472.5767,260.1277,437.539 666,069,376

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

Moving Averages: 10-period 50-period 200-period
Close: 7,480.73 7,854.22 7,519.65
Volatility: 36 20 21
Volume: 627,910,272 561,579,136 533,072,608

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 1.1% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 13 periods.

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