PayPal Fuels Solid Gain For NASDAQ Composite (.IXIC)
The Dow Jones was up 0.6%, while the Nasdaq composite and S&P 500 added 0.5%. The Russell 2000 small-cap index eked out a small gain. Volume on the NYSE and Nasdaq was tracking higher than Monday’s levels, more so on the Nasdaq.
Dow Jones stock Nike (NKE) jumped 1% to 82.98. It’s still in buy range from an 81.10 buy point. Positive sentiment was fueled after Canaccord Genuity upgraded shares to buy from hold. Canaccord also raised Nike’s price target to 95 from 78.
Meanwhile, a merger made headlines in the semiconductor sector. Shares of Integrated Device Technology (IDTI) jumped nearly 11% to 46.60 on news that Tokyo-based Renasas is acquiring it for $6.7 billion, or 49 a share. Renasas is mostly known for its automotive chips, but the deal with expand the company’s markets into data centers and communications devices.
In stock market results today, Tesla (TSLA) slumped 3% after soaring 8.5% Monday. Sellers were in Tesla stock Tuesday after Nomura Instinet downgraded shares to neutral. Nomura also slashed Tesla’s price target to 300 from 400, saying the stock is “no longer investable.”
While Tesla lagged in the Nasdaq 100, PayPal (PYPL) outperformed. Shares rose nearly 2% to 91.50 as the stock tries to reclaim a 92.45 flat-base entry.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,810.20.
The projected upper bound is: 8,146.73.
The projected lower bound is: 7,816.71.
The projected closing price is: 7,981.72.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with NASDAQ COMPOSITE), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 26.0899. This is not an overbought or oversold reading. The last signal was a buy 0 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 54.70. 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 -39. This is not a topping or bottoming area. The last signal was a sell 5 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 2 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 48.314 at 7,972.474. Volume was 0% below average (neutral) and Bollinger Bands were 0% 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: 8,014.59 7,844.48 7,388.31
Volatility: 12 13 19
Volume: 495,127,264 465,320,736 514,511,456
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 7.9% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 10 periods.