NASDAQ Composite (.IXIC) tread water ahead of trade-deal signing
U.S. stock benchmarks on Wednesday opened slightly lower to flat as investors awaited the signing of a partial Sino-American trade pact later in the day, amid a rollout of quarterly corporate earnings results. The hoped for improvement in U.S.-China trade relations might not be immediately achieved though, with key issues left unresolved, including existing tariffs and efforts to impose restrictions on China’s Huawei Technologies Co.
The Dow Jones Industrial Average DJIA, +0.31% was off 13 points, or less than 0.1%, at 28.921, the S&P 500 index SPX, +0.19% added less than 0.1% at 3,284 and the Nasdaq Composite Index COMP, +0.08% picked up 0.1% at 9,260. The trade deal is expected to be signed in the White House at 11:30 a.m. Eastern time. In economic news, U.S. wholesale inflation rose 0.1% in December, according to the Labor Department’s producer price index, below the 0.2% rise expected by economists, according to a MarketWatch poll.
An account of business conditions in the Fed’s regional districts, known as the Beige Book, is due at 2 p.m. In corporate news, Target Corp. shares TGT, -6.59% were down after the retailer said sales rose 1.4% between Nov. 1 and Dec. 31 in stores and through digital channels operating for at least 12 months, but warned that growth for the full quarter, which includes January, would likely come in less than half the 3% to 4% growth it had predicted.
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 8,801.93.
The projected upper bound is: 9,414.24.
The projected lower bound is: 9,138.04.
The projected closing price is: 9,276.14.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 85.6535. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 74.76. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 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 sell 8 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 21 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 7.366 at 9,258.695. Volume was 6% above average (neutral) and Bollinger Bands were 16% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 9,154.85 8,757.28 8,183.36
Volatility: 12 10 18
Volume: 611,276,096 571,775,680 550,301,696
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 13.1% 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 very strong flows of volume into .IXIC (bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 61 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.
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