NASDAQ Composite (.IXIC) tumble after Trump’s latest tariff threat

NASDAQ Composite (.IXIC) tumble after Trump’s latest tariff threat

NASDAQ Composite (.IXIC) tumble after Trump’s latest tariff threat

U.S. stock futures fell sharply Sunday, after President Donald Trump said he would raise tariffs this week on $200 billion of Chinese goods to 25%. Dow Jones Industrial Average futures YMM9, -2.08% sank more than 480 points, or 1.8%, while S&P 500 futures ESM9, -2.07% fell 1.8% and Nasdaq Composite futures NQM9, -2.35% dropped 2.1%.

After recovering slightly from their initial declines, futures resumed their tumble Sunday evening, hitting session lows after a report that China may withdraw from this week’s scheduled trade talks. Last week, officials said that they had made progress after the latest round of talks, and expressed hope that a deal could be agreed upon this week.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 8,348.55.

The projected lower bound is: 8,007.62.

The projected closing price is: 8,178.08.

Candlesticks

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.

A morning star occurred (this is a three-candle pattern). This is a bullish pattern that often signifies a major bottom.

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 47.2280. This is not an overbought or oversold reading. The last signal was a sell 3 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 67.88. 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 3 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 88. This is not a topping or bottoming area. The last signal was a sell 3 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 up 127.224 at 8,163.996. Volume was 8% below average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
8,092.8838,164.7148,084.7998,163.996 524,427,008

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

Moving Averages: 10-period 50-period 200-period
Close: 8,101.08 7,801.58 7,529.34
Volatility: 14 14 25
Volume: 517,603,520 570,918,976 577,294,272

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 8.4% above its 200-period moving average and is in an upward 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 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 79 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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