Shanghai: SSE Composite Index (.SSEC) negotiators were beginning to outline a deal to end a long-running trade spat
Stocks finished lower Thursday, with the Nasdaq snapping an eight-session winning streak, as fresh economic data out of Europe and Japan suggest further slowing in global growth. However, fears about a world-wide slowdown were somewhat tempered by reports that U.S. and Chinese negotiators were beginning to outline a deal to end a long-running trade spat
How did major benchmarks fare?
The Dow Jones Industrial Average DJIA, -0.40% fell 103.81 points, or 0.4%, to 25,850.63 and the S&P 500 SPX, -0.35% shed 9.82 points, or 0.4%, to 2,774.88, while the Nasdaq Composite Index COMP, -0.39% dropped 29.36 points, or 0.4%, to 7,459.71.
What drove the market?
U.S. and Chinese negotiators have started to iron out specific details of a possible trade deal, Reuters reported, citing sources it called familiar with the talks. The report said agreements in principle are being drawn up in six key areas: forced technology transfers and cyber theft, intellectual-property rights, services, currency, agriculture and nontariff barriers to trade.
Negotiators have continued talks in Washington this week, following a round of discussions last week in Beijing. President Donald Trump earlier said that a March 1 deadline isn’t a “magical” date, which investors took as a sign that tariffs on imports of Chinese goods may not automatically rise next month if progress continues toward a deal.
Concerns about slowing global growth were underscored by the release of surveys from Europe and Japan that showed manufacturing contracting in February, with export-dependent German manufacturers reporting the worst drop in activity in more than six years.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 2,645.92.
The projected upper bound is: 2,826.12.
The projected lower bound is: 2,680.92.
The projected closing price is: 2,753.52.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 73.6215. This is not an overbought or oversold reading. The last signal was a sell 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 69.73. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 100.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 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 28 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -9.418 at 2,751.801. Volume was 83% above average (neutral) and Bollinger Bands were 34% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,709.02 2,590.58 2,757.66
Volatility: 21 18 24
Volume: 22,009,272,320 15,572,536,320 14,421,125,120
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 0.2% below its 200-period moving average and is in an upward 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 moderate flows of volume into .SSEC (mildly bullish). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 22 periods.