NASDAQ Composite (.IXIC) – Virus concerns drag down Wall St
US stocks fell on Friday as fears of economic damage from the spread of the coronavirus intensified, though Wall Street’s major indexes ended well above their session lows.
The S&P 500 posted its 10th decline in 12 sessions as moves to contain the virus crippled supply chains and prompted a sharp cut to global economic growth forecasts for 2020.
Since its record closing high on February 19, the benchmark index has lost more than 12 per cent, wiping out $US3.43 trillion from its market capitalisation, according to S&P Dow Jones Indices.
Even so, for the week the S&P 500, along with the Dow Jones Industrial Average and the Nasdaq, posted a modest gain as stocks on Friday pared losses late in the session.
Comments from Federal Reserve officials about the possibility of using other tools in addition to interest rate cuts to blunt the economic impact of the coronavirus helped stocks ease declines, said Alicia Levine, chief strategist at BNY Mellon Investment Management in New York.
Nonetheless, “it’s very unclear what the economic impact will be,” Levine said.
Yields on long-dated US Treasuries fell to record lows as investors fled to bonds, whose prices move inversely to their yields.
The drop in Treasury yields weighed heavily on shares of financial companies, which tumbled 3.3 per cent. The S&P 500 banks index dropped 4.7 per cent, bringing its total decline for the week to more than 8 per cent.
Shares of cruise operators Carnival Corp and Royal Caribbean Cruises Ltd slid after Reuters reported that the administration of President Donald Trump was considering ways to discourage US travellers from taking cruises.
Carnival shares fell 2.6 per cent, and Royal Caribbean shares dropped 1.2 per cent.
Data showing a robust pace of hiring in February largely went ignored, given that the data captured little of the impact from the coronavirus.
A sharp downturn in later economic and corporate earnings data would likely strike a further blow to US markets, analysts said.
The Dow Jones Industrial Average fell 256.5 points, or 0.98 per cent, to 25,864.78, the S&P 500 lost 51.57 points, or 1.71 per cent, to 2,972.37, and the Nasdaq Composite dropped 162.98 points, or 1.87 per cent, to 8,575.62.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 9,005.10.
The projected lower bound is: 8,131.34.
The projected closing price is: 8,568.22.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 61.9216. This is not an overbought or oversold reading. The last signal was a buy 4 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 36.99. 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 4 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 -98. This is not a topping or bottoming area. The last signal was a buy 4 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 10 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -162.977 at 8,575.618. Volume was 67% above average (neutral) and Bollinger Bands were 202% 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: 8,827.01 9,234.55 8,416.86
Volatility: 57 31 22
Volume: 1,015,345,792 668,477,888 583,205,184
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 down today (bearish) 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 1.9% 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 moderate flows of volume out of .IXIC (mildly bearish). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 8 periods.
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