NASDAQ Composite (.IXIC) turns negative
U.S. stock benchmarks cut solid gains Thursday morning after a tweet from President Donald Trump indicated that trade talks between China and the U.S. may not be making substantial progress.
Trump tweeted that China is “letting us down” by not buying U.S. farm products “that they said they would.” Trump’s tweet comes amid reporting that the administration is increasingly concerned over the prospect of a Sino-American trade resolution, amid a reshuffling of the Chinese negotiating team.
Trump said at last month’s G-20 meeting in Osaka, Japan that Chinese President Xi Jinping had agreed to order large new purchases of U.S. agricultural goods “almost immediately.” The Nasdaq Composite Index COMP, -0.08% which tends to be sensitive to news on trade progress, turned negative after opening solidly higher.
The index was flat but in the red at 8,201, but had been as high as 8,222, according to FactSet data. The Dow Jones Industrial Average DJIA, +0.85% meanwhile, held on to positive territory but was off its best levels–briefly breaking above a milestone at 27,000 –up 0.4% at 26,957 and the S&P 500 index SPX, +0.23% was trading up less than 0.1% at 2,995, but had hit a high at 3,002.18 intraday.
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 7,893.46.
The projected upper bound is: 8,447.78.
The projected lower bound is: 7,948.33.
The projected closing price is: 8,198.06.
A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 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 80.0395. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 65.51. 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 26 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 23 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -6.488 at 8,196.043. Volume was 15% below average (neutral) and Bollinger Bands were 3% narrower 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: 8,114.50 7,867.72 7,519.36
Volatility: 10 20 26
Volume: 616,069,504 574,707,456 593,264,896
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 9.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 17 periods.