Shanghai: SSE Composite Index (.SSEC) investors looked ahead to a speech by the Federal Reserve chairman for signs of possible plans for more U.S. interest rate cuts
Global stock markets were back in positive territory Wednesday as investors looked ahead to a speech by the Federal Reserve chairman for signs of possible plans for more U.S. interest rate cuts.
Market benchmarks in London and Frankfurt rose in early trading. On Wall Street, the futures for the S&P 500 index rose 0.7% to 2,918 and futures for the Dow Jones Industrial Average climbed 0.6% to 26,085.
After a three-day run of gains, U.S. stocks fell Tuesday after a slide in bond yields and a mixed batch of corporate earnings. Financial sector stocks led the declines.
Investors are now looking ahead to the Fed’s Wednesday release of notes from its policymaking meeting last month and a speech Friday by Chairman Jerome Powell.
Investors expect Powell to signal the Fed “is about to embark on a reinvigorated wave of easing,” said Halley. However, he said U.S. data “simply does not support the need for an aggressive easing cycle.”
London’s FTSE 100 rose 1.1% in midday trading to 7,205 and Frankfurt’s DAX also climbed 1.1% to 11,784. France’s CAC-40 jumped 1.5% to 5,426.
Tokyo’s Nikkei 225 shed 0.3% to close at 20,618.57. Hong Kong’s Hang Seng inched up 0.2% to finish at 26,270.04. The Shanghai Composite Index was little changed at 2,880.33.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 2,897.37.
The projected upper bound is: 2,961.96.
The projected lower bound is: 2,797.54.
The projected closing price is: 2,879.75.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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 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 93.9945. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 52.48. 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 9 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 buy 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 0.330 at 2,880.331. Volume was 23% below average (neutral) and Bollinger Bands were 4% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,827.35 2,912.76 2,836.78
Volatility: 16 18 24
Volume: 15,688,725,504 17,430,407,168 22,786,205,696
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 1.5% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 26 periods.
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