The NASDAQ index is leading the way to the upside in the equity markets today. It currently trades at 11050.46. The high price extended to 11096.93.
The moved to the upside today has taken the price back above its 50 day moving average at 10954.12 (see white line in the chart above). The price decline from the all-time high of 12074.06 saw the price come down -11.15% (from the high to the low).
Is that correction enough?
What will help to determine the answer the question may come from the hourly chart below.
Looking at it,
- The 38.2% retracement of the move down from the high price comes in at 11242.217.
- The 200 hour moving average comes in at 11250.438.
- Finally the falling 50 hour moving average comes in at 11252.260.
The combination of those 3 technical levels will go a long way toward defining a more bullish technical bias (on a move above), or a more bearish technical bias (if the price cannot extend above those levels).
With the current price still below those levels, but moving higher today, the verdict is still out from a intermediate/longer term prospective on whether the correction was enough. However keep those levels in mind going forward should the momentum higher continue today. The market certainly will be watching the area for technical clues.
The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite includes over 2,500 companies, more than most other stock market indexes.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 11,572.54.
The projected lower bound is: 10,556.66.
The projected closing price is: 11,064.60.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 64.9377. This is not an overbought or oversold reading. The last signal was a buy 2 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 47.31. 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 sell 8 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 -49. 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 7 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed down -139.855 at 11,050.469. Volume was 6% below average (neutral) and Bollinger Bands were 39% wider than normal.
Open High Low Close Volume 11,222.083 11,245.415 11,046.429 11,050.469 923,763,840
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 11,188.75 10,982.85 9,456.06 Volatility: 46 29 46 Volume: 916,839,104 881,163,072 878,846,144
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 16.9% 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 3 periods.