NASDAQ Composite (.IXIC) – Wall Street drops over 3% on virus fears, travel shares slammed

NASDAQ Composite (.IXIC) – Wall Street drops over 3% on virus fears, travel shares slammed

NASDAQ Composite (.IXIC) – Wall Street drops over 3% on virus fears, travel shares slammed

U.S. stocks tumbled on Thursday, with shares of banks and travel companies taking a beating, as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors just one day after election results powered a rally.

The major indexes fell over 3%. On Wednesday the market tallied huge gains following moderate Joe Biden’s success in the Super Tuesday primaries for the Democratic presidential nomination.

The coronavirus has led to more than 3,300 deaths worldwide. In the United States, new cases of the vast-spreading virus were reported on Thursday around New York and in San Francisco.

In the latest developments, Alphabet Inc’s Google joined other big tech firms in recommending employees in the Seattle area work from home.

“There’s no way to put a framework around this, there’s no way to model it, because you just don’t know,” said Carol Schleif, deputy chief investment officer at Abbot Downing in Minneapolis. “The market is clearly trading on emotion today and not fundamentals because they can’t peg where the fundamentals are.”

The Dow Jones Industrial Average fell 969.58 points, or 3.58%, to 26,121.28, the S&P 500 lost 106.18 points, or 3.39%, to 3,023.94 and the Nasdaq Composite dropped 279.49 points, or 3.1%, to 8,738.60.

The coronavirus epidemic could rob passenger airlines of up to $113 billion in revenue this year, an industry body warned.

Shares of cruise operators tumbled after the Grand Princess ocean liner, owned by Carnival Corp, was barred from returning to its home port of San Francisco on coronavirus fears after at least 20 people aboard fell ill. Carnival shares dropped 14.1%, while Royal Caribbean Cruises fell 16.3%.

Data showed that the number of Americans filing for unemployment benefits fell last week, suggesting the labor market was on solid footing despite the coronavirus outbreak, with investors casting an eye toward Friday’s U.S. employment report for February.

Declining issues outnumbered advancing ones on the NYSE by a 5.90-to-1 ratio; on Nasdaq, a 4.76-to-1 ratio favored decliners.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 9,166.76.

The projected lower bound is: 8,302.98.

The projected closing price is: 8,734.87.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.0245. This is not an overbought or oversold reading. The last signal was a buy 3 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 39.86. 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 3 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 -65. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed down -279.493 at 8,738.595. Volume was 45% above average (neutral) and Bollinger Bands were 194% wider than normal.

Open     High      Low     Close     Volume___
8,790.0918,921.0778,677.3868,738.595 901,109,760
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,927.10 9,241.96 8,412.91
Volatility: 57 31 22
Volume: 980,640,896 657,748,032 580,473,024

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.

Summary

NASDAQ COMPOSITE is currently 3.9% 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 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 7 periods.

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