NASDAQ Composite (.IXIC) wavers as Amazon buy hits health stocks, banks gain

NASDAQ Composite (.IXIC) wavers as Amazon buy hits health stocks, banks gain

NASDAQ Composite (.IXIC) wavers as Amazon buy hits health stocks, banks gain

  • Drug stocks tumble after Amazon buys online pharmacy
  • Amazon’s delivery plans hit FedEx, UPS
  • U.S. Q1 GDP growth revised down to 2 pct
  • Starbucks drops as CFO to retire
  • Indexes up: Dow 0.09 pct; S&P 0.19 pct, Nasdaq 0.25 pct

U.S. stocks swung between gains and losses on Thursday, as Amazon’s foray into drug retailing whipped the healthcare sector, while a rise in financial stocks for the first time in 14 days cushioned the markets.

Amazon.com said it would buy online pharmacy PillPack, a move that will put the online retail giant in direct competition with drugstore chains, drug distributors and pharmacy benefit managers.

At 12:54 p.m. ET the Dow Jones Industrial Average was up 21.24 points, or 0.09 percent, at 24,138.83, the S&P 500 was up 5.02 points, or 0.19 percent, at 2,704.65 and the Nasdaq Composite was up 18.34 points, or 0.25 percent, at 7,463.43.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,684.24.

The projected lower bound is: 7,331.47.

The projected closing price is: 7,507.85.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 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 16.7544. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 45.20. 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 sell 5 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 -150.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 5 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 58.598 at 7,503.683. Volume was 5% below average (neutral) and Bollinger Bands were 34% narrower than normal.

Open High Low Close Volume___
7,438.1137,526.0677,419.5607,503.683 512,333,568

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,644.87 7,426.63 7,076.23
Volatility: 17 15 19
Volume: 718,762,304 533,068,320 514,542,560

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 6.0% 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 1 periods.

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