NASDAQ Composite (.IXIC) – U.S. Stock Futures Rise With Biden Comeback Adding to Upswing
U.S. stock index futures rose, indicating a positive start after Thursday’s tumble, as Joe Biden’s surprise comeback in the race for the Democratic nomination became the latest development to whip up swings in extremely volatile markets.
S&P 500 Index futures expiring in March rose 1.3% as of 8:25 a.m. in London, erasing a loss of as much as 0.7%, after Biden scored wins in nine states, while Bernie Sanders won the biggest prize of the Super Tuesday primaries with a victory in California. Futures on the Nasdaq 100 Index and those on the Dow Jones Industrial Average both gained more than 1.3%.
“The market looks at the outcome of Joe Biden posting a strong showing this Super Tuesday as preferential,” said Jerry Braakman, chief investment officer of First American Trust, in Santa Ana, California. “Biden would be a less severe change for markets that already have enough to worry about, with all these external shocks,” Braakman said by phone.
Biden, whose campaign was faltering just days ago, scored wins in Virginia, North Carolina, Arkansas, Oklahoma, Tennessee, Alabama and Minnesota. His victories in Texas and Massachusetts were especially stinging for Sanders, who had supplanted Biden at the top of polls in recent weeks.
“Anything that demonstrates that socialism is less popular than Sanders suggests and reduces the risk of an extreme shift in both our attitudes towards businesses and the role of government in our society is a relief,” said Jason Browne, president of Alexis Investment Partners. “Investing is always a long-term commitment that requires faith in the future. This is especially true when current earnings are threatened by something like coronavirus.”
In Europe, a gauge tracking major shares across the continent rose 0.1%, with miners leading gains among sectors and travel and leisure shares leading losses. A volatile session for Asian stocks saw declines in Australia offset gains in South Korea, while Japan ended little changed. Chinese and Hong Kong shares fluctuated.
On Tuesday, the S&P 500 fell for the eighth time in nine days following the Federal Reserve’s 50 basis-point cut of its benchmark interest rate. Fed chair Jerome Powell said during a press conference that the U.S. economy remains strong, but the virus outbreak will weigh on activity “for some time.”
Overall, the bias in prices is: Downwards.
The projected upper bound is: 9,072.79.
The projected lower bound is: 8,289.64.
The projected closing price is: 8,681.22.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 47.1328. This is not an overbought or oversold reading. The last signal was a buy 1 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 35.37. 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 1 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 -80. This is not a topping or bottoming area. The last signal was a buy 1 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 7 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -268.075 at 8,684.090. Volume was 80% above average (neutral) and Bollinger Bands were 191% wider 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: 9,108.25 9,243.07 8,401.72
Volatility: 49 28 21
Volume: 925,422,912 666,747,200 577,230,784
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 3.4% 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 5 periods.