NASDAQ Composite (.IXIC) tech stocks helped lead Wall Street higher

NASDAQ Composite (.IXIC) tech stocks helped lead Wall Street higher

NASDAQ Composite (.IXIC) tech stocks helped lead Wall Street higher

Banks and tech helped lead Wall Street higher on Monday, while Boeing and Facebook were a drag and investors eyed this week’s U.S. Federal Reserve meeting for affirmation of its commitment to “patient” monetary policy.

Following the S&P 500’s best week since November, the benchmark index ended the session about 3.3 percent below its all-time high reached in September. All three major U.S. indexes closed in positive territory.

The Fed’s two-day policy meeting begins on Tuesday. Investors anticipate the U.S. central bank will reinforce its dovish approach toward further interest rate hikes.

“There’s always trepidation going into a Fed meeting,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “Anything that gives visibility to the potential for future rate hikes is going to keep people on the sidelines.”

The Dow Jones Industrial Average rose 65.23 points, or 0.25 percent, to 25,914.1, the S&P 500 gained 10.46 points, or 0.37 percent, to 2,832.94 and the Nasdaq Composite added 25.95 points, or 0.34 percent, to 7,714.48.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 7,950.23.

The projected lower bound is: 7,528.77.

The projected closing price is: 7,739.50.

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 33 white candles and 17 black candles for a net of 16 white 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 87.9359. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 68.69. 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 55 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 145.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 25.951 at 7,714.478. Volume was 3% below average (neutral) and Bollinger Bands were 55% narrower than normal.

Open High Low Close Volume___
7,696.3827,737.6667,677.7417,714.478 595,690,176

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

Moving Averages: 10-period 50-period 200-period
Close: 7,573.83 7,310.52 7,486.48
Volatility: 16 19 25
Volume: 658,962,496 589,209,728 580,392,256

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 3.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .IXIC and have had this outlook for the last 46 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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