NASDAQ Composite (.IXIC) – U.S. stock futures tumble as coronavirus crisis intensifies
U.S. stock index futures sank on Wednesday following stark predictions of a rising U.S. death toll and economic damage from the coronavirus outbreak, a day after the S&P 500 ended its worst quarter since the 2008 financial crisis.
President Donald Trump on Tuesday warned Americans of a “very, very painful” two weeks, with White House health officials modeling an enormous jump in virus-related deaths even with strict social distancing measures.
Cleveland Federal Reserve Bank President Loretta Mester said reports measuring U.S. economic activity are likely to be “very bad” in the first half of 2020 and the unemployment rate could rise above 10% due to efforts to stem the virus outbreak.
The rapid worldwide spread of the disease has forced entire countries to shut down, stalling business activity and raising fears of corporate defaults.
The S&P 500 lost about $7 trillion in market value to post its worst first quarter on record, while the Dow Jones .DJI ended Tuesday with its biggest quarterly fall since 1987.
At 05:21 a.m. ET, Dow e-minis 1YMcv1 were down 672 points, or 3.09%, S&P 500 e-minis EScv1 were down 81.5 points, or 3.17% and Nasdaq 100 e-minis NQcv1 were down 216 points, or 2.77%.
SPDR S&P 500 ETFs SPY.P were down 3.27%.
The S&P 500 index .SPX closed down 1.6% at 2,584.59 on Tuesday.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 8,582.34.
The projected upper bound is: 8,581.55.
The projected lower bound is: 6,751.09.
The projected closing price is: 7,666.32.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 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 78.3949. This is not an overbought or oversold reading. The last signal was a sell 0 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 46.94. 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 12 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 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 4 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -74.053 at 7,700.098. Volume was 46% above average (neutral) and Bollinger Bands were 137% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,345.69 8,671.05 8,401.67
Volatility: 76 75 41
Volume: 1,154,978,176 880,929,344 637,460,800
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 8.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 25 periods.