NASDAQ Composite (.IXIC) US will leave tariffs on $200 billion of goods at 10% and not boost it to 25%
Stocks rallied Monday as investors cheered the trade truce reached over the weekend between the US and China.
Stocks closed at their highest level in about a month as the energy, technology and consumer discretionary sectors led the market higher. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite Index all closed more than 1% higher to kick off the shortened trading week.
The White House said on Saturday that the US will leave tariffs on $200 billion of goods at 10% and not boost it to 25%. China also agreed to buy an as-yet agreed upon amount of energy, industrial, agricultural and other products from the US. The world’s two biggest economies agreed to suspend trade tariffs for 90 days as they try to reach a trade agreement. If they can’t, tariffs will climb to 25%. US stocks rallied last week on optimism over the US-China meeting in Argentina at the G-20 summit.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 7,484.84.
The projected upper bound is: 7,800.00.
The projected lower bound is: 7,061.21.
The projected closing price is: 7,430.60.
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 23 white candles and 27 black candles for a net of 4 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 92.1725. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 56.71. 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 156.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 3 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 110.976 at 7,441.512. Volume was 15% above average (neutral) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,134.98 7,452.03 7,519.83
Volatility: 32 32 23
Volume: 569,646,656 615,943,360 543,811,648
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 1.0% below its 200-period moving average and is in an upward 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 bullish on .IXIC and have had this outlook for the last 2 periods.