NASDAQ Composite (.IXIC) Weighed Down by Software Stocks
Led by gains in trade-sensitive industrials and shares in the financial sector, the Dow Jones Industrial Average continues to gain altitude and was higher by nearly 200 points to an eight-month high, while the Nasdaq is underwater as a result of pressure on software stocks with component stocks Microsoft ( MSFT ) and Intuit ( INTU ) leading decliners.
China’s measured and watered-down response to new US trade tariffs reassured trade-jittery investors, driving up global equity bourses across Asia and Europe. At the same time, the risk-on trade drove up the 10-year Treasury note yield to 3.07%, providing a bid for the financial sector, currently the best performing sector of the S&P 500.
Economic data Wednesday morning continued to indicate problems ahead in the housing market. New housing starts swelled 9.2% in August to a seasonally-adjusted annual rate (SAAR) of 1.282 million, beating the estimated 1.240 million. But permits continued to deteriorate and were down 5.7% to a SAAR of 1.229 million, its lowest level since May 2017 and significantly below expectations. Additionally, July permits were revised lower to 1.303 million from 1.311 million.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,115.91.
The projected lower bound is: 7,791.80.
The projected closing price is: 7,953.85.
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 27 white candles and 23 black candles for a net of 4 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 31.4251. This is not an overbought or oversold reading. 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 51.28. 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 11 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 -43. This is not a topping or bottoming area. The last signal was a sell 11 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 8 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -6.069 at 7,950.038. Volume was 2% below average (neutral) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,950.18 7,882.86 7,421.08
Volatility: 13 13 19
Volume: 514,270,400 477,437,440 515,100,544
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 7.1% above its 200-period moving average and is in an upward trend. Volatility is 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 16 periods.