Shanghai: SSE Composite Index (.SSEC) renewed jitters over the trade war between the U.S. and China were weighing on sentiment

Shanghai: SSE Composite Index (.SSEC) renewed jitters over the trade war between the U.S. and China were weighing on sentiment

Shanghai: SSE Composite Index (.SSEC) renewed jitters over the trade war between the U.S. and China were weighing on sentiment

Shares were mostly lower in Asia on Wednesday and Hong Kong’s Seng index tumbled 1.7% as thousands continued protests against proposed legislation that many city residents fear could further erode the territory’s legal autonomy.

Renewed jitters over the trade war between the U.S. and China were weighing on sentiment, pulling shares slightly lower on Wall Street, where benchmarks fell for the first time in six days.

Japan’s Nikkei 225 index lost 0.2% to 21,154.28 and the Kospi in Seoul shed 0.2% to 2,1087.60. The Shanghai Composite index declined 0.5% to 2,910.82. Australia’s S&P ASX 200 edged 0.1% higher 6,550.40. Shares rose in Taiwan but fell in Jakarta and Thailand.

On Wall Street, defense contractors suffered steep declines and technology stocks gave up most of their early gains, taking the steam out of a morning rally. The Dow Jones Industrial Average closed with a loss of 14 points after rising as many as 186 points just after trading began.

The market had rallied for five straight days since the Federal Reserve signaled it is open to cutting interest rates if needed to stabilize the economy rattled by trade disputes. The gains had erased much of the S&P 500’s 6.6% decline in May. But Tuesday, concerns that the U.S. trade spat with China could be prolonged and hurt growth in the world’s two biggest economies dimmed investor enthusiasm.

Trump told reporters Tuesday he was prepared to expand 25% tariffs already imposed on $250 billion of Chinese exports to cover another $300 billion if a deal with Beijing falls through.

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 2,946.92.

The projected upper bound is: 3,043.86.

The projected lower bound is: 2,770.37.

The projected closing price is: 2,907.11.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

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 71.3833. This is not an overbought or oversold reading. The last signal was a buy 1 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 48.32. 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 22 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 89. This is not a topping or bottoming area. The last signal was a buy 1 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 11 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -16.337 at 2,909.380. Volume was 21% below average (neutral) and Bollinger Bands were 62% narrower than normal.

Open High Low Close Volume___
2,917.2242,924.7022,903.8832,909.38024,025,577,472

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

Moving Averages: 10-period 50-period 200-period
Close: 2,884.80 3,025.75 2,780.89
Volatility: 19 29 27
Volume: 20,303,482,880 28,091,699,200 21,534,619,648

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 is currently 4.6% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 30 periods.

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