NASDAQ Composite (.IXIC) – US stocks fall for seventh straight day
The S&P 500 fell for the seventh straight day on Friday and the benchmark index suffered its biggest weekly drop since the 2008 global financial crisis on growing fears the fast-spreading coronavirus could push the economy into recession.
Stocks regained some ground right at the end of a volatile session.
The Dow and the Nasdaq also registered their deepest weekly percentage losses since October 2008.
The Nasdaq managed to eke out an 0.01 per cent gain after plunging as much as 3.5 per cent during the session. After falling as much as 4.2 per cent – more than 1,000 points – the Dow ended the day down 1.4 per cent.
But, after the bell, S&P 500 e-mini futures were up about 1 per cent in extended trade.
On Thursday, all three indexes had confirmed corrections by finishing more than 10 per cent below their closing record highs.
Equities found some support after US Federal Reserve Chair Jerome Powell said the fundamentals of the American economy remained strong and that the central bank would act as appropriate to provide support.
But investors had spent most of the day dumping equities for the safety of US Treasuries, pushing 10-year yields to their fourth record low this week.
The virus spread further on Friday, with cases reported for the first time in at least six countries across four continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to “very high.”
Some investors voiced concerns about heading into a weekend where they could not trade on new reports about the virus.
The Dow Jones Industrial Average fell 357.28 points, or 1.39 per cent, to 25,409.36; the S&P 500 lost 24.54 points, or 0.82 per cent, to 2,954.22; and the Nasdaq Composite added 0.89 point, or 0.01 per cent, to 8,567.37.
The CBOE volatility index, also known as Wall Street’s fear gauge ended the day near its session low, up 0.95 point at 40.11, after rising as high as 49.48.
Of the S&P’s 11 major sectors, the rate-sensitive financial index weighed the most on the benchmark S&P 500 index, ending the day down 2.6 per cent.
The utilities sector was the S&P’s biggest percentage loser with a 3.3 per cent drop. Real estate and consumer staples – also rate-sensitive sectors that are often seen as safe havens – both fell more than 2 per cent.
Yet the energy, technology and communications services index all showed gains for the day.
Trading was brisk on US exchanges with 19.31 billion shares changing hands compared with a 9.25 billion-share average for the last 20 days.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 8,899.50.
The projected lower bound is: 8,225.36.
The projected closing price is: 8,562.43.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 11.6117. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 25.02. This is where it usually bottoms. 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 6 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 -170.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 5 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 0.888 at 8,567.368. Volume was 142% above average (neutral) and Bollinger Bands were 176% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 9,291.02 9,243.36 8,392.14
Volatility: 35 23 20
Volume: 814,698,368 648,275,328 571,415,424
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 2.1% 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 3 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an oversold condition.