NASDAQ Composite (.IXIC) too early to predict an outcome in U.S.-China trade talks

NASDAQ Composite (.IXIC) too early to predict an outcome in U.S.-China trade talks

NASDAQ Composite (.IXIC) too early to predict an outcome in U.S.-China trade talks

Global stock indexes ended with mostly slight losses on Wednesday after U.S. Trade Representative Robert Lighthizer said it was too early to predict an outcome in U.S.-China trade talks, although a jump in oil prices lifted shares of energy companies.

Lighthizer also told a congressional hearing that U.S. issues with China were “too serious” to be resolved with promises from Beijing.

“The general consensus is talks are progressing but it may not be full speed ahead,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The safe-haven dollar rose from a three-week low as investors grew cautious about U.S. trade talks with China. Investors also were absorbing comments from Federal Reserve Chairman Jerome Powell, who spoke for a second day before the U.S. Congress. Powell has emphasized patience on raising U.S. interest rates.

Oil prices rallied after an unexpected decline in U.S. crude inventories and after Saudi Arabia appeared undaunted by pressure from Trump on OPEC to prevent steeper price rises.

Brent crude futures rose 1.8 percent to settle at $66.39 a barrel, while U.S. crude jumped 2.6 percent to $56.94.

The S&P 500 energy index gained 0.4 percent, helping to limit losses in the benchmark S&P 500 index.

The Dow Jones Industrial Average fell 72.82 points, or 0.28 percent, to 25,985.16, the S&P 500 lost 1.52 points, or 0.05 percent, to 2,792.38 and the Nasdaq Composite added 5.21 points, or 0.07 percent, to 7,554.51.

Also on Wednesday, Trump’s former lawyer Michael Cohen called the president a “conman” but said he had no direct evidence Trump colluded with Moscow to bolster his White House campaign ahead of the 2016 election.

Brian Belski, chief investment strategist at BMO Capital Markets in New York, said the market recovered when investors realized there would not be “some kind of bombshell out of Cohen’s testimony.”

Investors also were on alert as tensions flared between nuclear-armed neighbors India and Pakistan and as the second U.S.-North Korean nuclear summit kicked off.

Trump is meeting Kim Jong Un in Hanoi, with the United States pushing North Korea’s leader to dismantle its nuclear weapons program.

In London, Prime Minister Theresa May won a two-week reprieve from British lawmakers, who postponed a threatened rebellion aimed at blocking a no-deal Brexit after she agreed to a possible delay to Britain’s departure from the European Union.

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 7,271.34.

The projected upper bound is: 7,877.07.

The projected lower bound is: 7,251.31.

The projected closing price is: 7,564.19.

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 29 white candles and 21 black candles for a net of 8 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 70.9336. This is not an overbought or oversold reading. The last signal was a sell 4 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 68.77. 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 42 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 83. This is not a topping or bottoming area. The last signal was a sell 0 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 38 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 5.211 at 7,554.509. Volume was 4% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
7,526.4177,562.2957,485.3947,554.509 584,520,512

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

Moving Averages: 10-period 50-period 200-period
Close: 7,494.11 7,054.10 7,475.34
Volatility: 7 30 25
Volume: 560,113,408 604,968,640 567,230,720

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% 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 33 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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