NASDAQ Composite (.IXIC) trade worries remain a cloud over Wall Street
The Nasdaq composite and small-cap stocks led a bounce on Wall Street Tuesday, but the stock market made up less than half of the prior day’s losses.
The Nasdaq rose 1.1%, the S&P 500 gained 0.8%, and the Dow Jones Industrial Average tacked on 0.8%. Indexes lost some gains late in the session as the market showed some signs of caution even as it rallied.
The S&P 500 and Nasdaq remained below the 50-day moving average after Monday’s rout, which left the market outlook weaker. In one positive sign, the Dow rose back above its 50-day line. The Russell 2000 climbed 1.3% at the close, a good day for small caps.
Volume fell from Monday’s totals, according to early data. That’s an indication that buyers couldn’t match the fervor sellers displayed in Monday’s rout. Volume was above average Monday in the major exchanges.
Trade worries remain a cloud over Wall Street, and developments on that front are likely to move the market. A UBS analyst warned that the trade dispute could result in 12,000 store closures for soft-line retailers.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 7,958.04.
The projected lower bound is: 7,517.23.
The projected closing price is: 7,737.63.
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 27 white candles and 23 black candles for a net of 4 white 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 23.7778. This is not an overbought or oversold reading. The last signal was a sell 10 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 37.87. 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 sell 10 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 -144.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 sell 9 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 87.470 at 7,734.494. Volume was 8% below average (neutral) and Bollinger Bands were 0% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,948.98 7,848.54 7,530.70
Volatility: 26 18 25
Volume: 571,996,224 565,155,008 581,729,472
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 2.7% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.
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