NASDAQ Composite (.IXIC) Trade Talks Begin
The market rang in solid gains last week to begin the New Year. Friday saw all the major indexes close up over 3.25% with the Nasdaq being the outlier closing up 4.26%.
For the week, the Dow closed up +1.61%, the S&P 500 up +1.86%, the Nasdaq Composite up +2.34% and the Russell 2000 Index up 3.2%. Trading volumes have been heavy all through the Christmas – New Year’s period, and the start of 2019 was no exception.
Friday’s trading volume on the consolidated tape was 20% higher (8.77 billion) than the 52 week average (7.25 billion) validating the risk-on mentality.
The VIX or fear gauge traded in a 34% range for the week and still posts a 20 handle, proving that volatility and heavy trading volume go hand-in-hand.Today, the markets are holding onto Friday’s gains as the market trade flat to higher to start the week. Currently 7 of the 11 S&P 500 Sectors are in the green with Consumer Discretionary up over 1.5% and Energy up over 0.8% while defensive plays such as Utilities and Consumer Staples are both down over 0.65%.
Crude oil and Gold both trade higher while the dollar moves lower. The yield on the 10-yr today is 2.6623%, down nearly 25% form the October highs. (3.2594%).
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,102.74.
The projected upper bound is: 7,244.31.
The projected lower bound is: 6,378.07.
The projected closing price is: 6,811.19.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.1606. This is not an overbought or oversold reading. The last signal was a sell 2 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 50.60. 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 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 84.614 at 6,823.471. Volume was 0% above average (neutral) and Bollinger Bands were 46% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,557.13 7,024.66 7,452.62
Volatility: 52 40 26
Volume: 720,170,176 650,122,496 557,801,856
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.
NASDAQ COMPOSITE is currently 8.4% 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 17 periods.