NASDAQ Composite (.IXIC) worries about the U.S.-China trade war
Stocks fell sharply on Thursday, adding to already steep losses for the month of October.
The Dow Jones Industrial Average dropped 327.23 points to 25,379.45, led by declines in Caterpillar. The S&P 500 fell 1.4 percent to 2,768.78 as the consumer discretionary and tech sectors lagged. The Nasdaq Composite pulled back 2.1 percent to close at 7,485.14. Overseas, China’s Shanghai Composite dropped sharply.
Thursday’s declines added to the market’s steep losses for the month. The Dow and S&P 500 have fallen more than 4 percent each, while the Nasdaq is down nearly 7 percent in October. Tech, the largest S&P 500 sector by market cap, is among the laggards this month, dropping 7.1 percent.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 7,739.65.
The projected upper bound is: 7,720.32.
The projected lower bound is: 7,233.83.
The projected closing price is: 7,477.08.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black 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 76.1183. 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 37.31. 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 -62. This is not a topping or bottoming area. The last signal was a buy 2 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 11 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -157.564 at 7,485.139. Volume was 9% above average (neutral) and Bollinger Bands were 134% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,571.45 7,878.13 7,514.73
Volatility: 37 20 21
Volume: 617,051,584 552,068,416 531,178,176
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 0.4% below 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 10 periods.