Shanghai: SSE Composite Index (.SSEC) increasingly anxious over the lack of signs of progress toward settling the U.S.-Chinese tariff war over trade and technology
Asian markets fell in early trading Thursday, following Wall Street’s worst day of the year amid signals of recession.
The yield on the closely watched 10-year Treasury fell so low Wednesday that, for the first time since 2007, it briefly crossed a threshold that has correctly predicted many past recessions. Weak economic data from Germany and China added to recent signals of a global slowdown.
That spooked investors, who responded by dumping stocks, sending the Dow Jones Industrial Average DJIA, +0.43% into an 800-point skid, its biggest drop of the year. The S&P 500 index SPX, +0.30% dropped nearly 3% as the market erased all of its gains from a rally the day before. Tech stocks and banks led the broad sell-off.
On Thursday, the U.S. 30-year bond yield TMUBMUSD30Y, -1.82% — which hit an all-time low Wednesday — dropped further in Asian trading, falling below the 2% level for the first time. Meanwhile, China’s central bank set the daily midpoint of the yuan at 7.0268 per U.S. dollar, the sixth consecutive session below the 7 level.
Japan’s Nikkei NIK, -1.21% dropped 1.2% while Hong Kong’s Hang Seng Index HSI, +0.76% was last in positive territory after sharply recovering from early losses. The Shanghai Composite SHCOMP, +0.25% fell 0.8% while the smaller-cap Shenzhen Composite 399106, +0.53% slipped 1%. Benchmark indexes in Taiwan Y9999, -0.96% , Singapore STI, -0.68% and Indonesia JAKIDX, -0.16% all retreated, and Australia’s S&P/ASX 200 XJO, -2.85% slumped 2.2%. South Korea’s Kospi was closed for a holiday.
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 2,899.66.
The projected upper bound is: 2,901.15.
The projected lower bound is: 2,728.62.
The projected closing price is: 2,814.89.
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 25 white candles and 25 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 70.4650. This is not an overbought or oversold reading. The last signal was a buy 5 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 40.76. 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 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 -52. This is not a topping or bottoming area. The last signal was a buy 4 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 9 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 6.883 at 2,815.798. Volume was 30% below average (neutral) and Bollinger Bands were 0% narrower 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: 2,804.18 2,913.71 2,831.19
Volatility: 19 19 24
Volume: 15,981,949,952 17,695,619,072 22,737,930,240
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.
SSE COMPOSITE is currently 0.5% below its 200-period moving average and is in an downward trend. Volatility is 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 22 periods.