Shanghai: SSE Composite Index (.SSEC) bulls are hoping that the U.S. and China can come to a trade agreement

Shanghai: SSE Composite Index (.SSEC) bulls are hoping that the U.S. and China can come to a trade agreement

Shanghai: SSE Composite Index (.SSEC) bulls are hoping that the U.S. and China can come to a trade agreement

U.S. stock indexes took confident steps forward as tariff talks began in China. Negotiators are meeting in Beijing in an attempt to end a nine-month standoff on trade.

The Nasdaq rambled 1.4% higher, while the S&P 500 added 1%. Small caps led with a 1.4% gain in the Russell 2000. Blue chips lagged, with the Dow Jones up 0.6%.

Shanghai’s composite index posted a 0.7% gain for the day.

Volume declined on both major U.S. exchanges compared with the same time Friday.

Bulls are hoping that the U.S. and China can come to a trade agreement, but critics say an agreement with China is all about compliance. China has a history of stalling after making promises, critics say.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,614.06.

The projected upper bound is: 2,619.24.

The projected lower bound is: 2,444.11.

The projected closing price is: 2,531.67.

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 24 white candles and 26 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 66.3193. This is not an overbought or oversold reading. The last signal was a buy 8 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 46.97. 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 54 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 25. This is not a topping or bottoming area. The last signal was a buy 2 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 18.220 at 2,533.089. Volume was 24% above average (neutral) and Bollinger Bands were 0% wider than normal.

Open High Low Close Volume___
2,528.6992,536.9782,515.5082,533.08917,730,500,608

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,500.10 2,592.91 2,833.97
Volatility: 17 21 24
Volume: 12,976,455,680 15,697,731,584 14,147,928,064

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

SSE COMPOSITE gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
SSE COMPOSITE is currently 10.6% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 17 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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