NASDAQ Composite (.IXIC) trade-fuelled rally loses steam

NASDAQ Composite (.IXIC) trade-fuelled rally loses steam

NASDAQ Composite (.IXIC) trade-fuelled rally loses steam

U.S. stocks edged lower in volatile trading on Thursday, as a rally sparked by progress in U.S.-China trade talks faded, with investors preferring defensive sectors such as real estate and utilities.

Wall Street opened higher after a Chinese commerce ministry spokesman said Washington and Beijing were in close contact over trade, and any U.S. trade delegation would be welcome, adding to the optimism over trade progress between the two economic giants.

Trading, however, has been increasingly choppy and the major stock indexes’ strong opening gains have petered out toward the end of the session in the past two days.

On Thursday, the defensive utilities and real estate rose more than 1 percent, while consumer staples was up 0.7 percent.

The markets have also been pressured by a slew of headlines ranging from a potential U.S. government shutdown, interest rates to uncertainty around Brexit.

Concerns over slowing global growth next year have also rattled investors.

Fueling the fears, a Reuters poll showed the U.S. Treasury yield curve will invert next year, possibly within the next six months, much earlier than forecast just three months ago, with a recession to follow as soon as a year after that.

Overall, the bias in prices is: Downwards

The projected upper bound is: 7,449.51.

The projected lower bound is: 6,653.99.

The projected closing price is: 7,051.75.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 47.1612. This is not an overbought or oversold reading. 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 44.76. 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 33 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 -32. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -27.978 at 7,070.334. Volume was 9% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
7,135.2817,154.6427,034.8207,070.334 525,891,264

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

Moving Averages: 10-period 50-period 200-period
Close: 7,158.21 7,320.45 7,512.40
Volatility: 32 35 23
Volume: 635,426,688 626,055,552 548,234,688

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 5.9% 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 2 periods.

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