Shanghai: SSE Composite Index (.SSEC) Renewed Uncertainty About Trade Deal

Shanghai: SSE Composite Index (.SSEC) Renewed Uncertainty About Trade Deal

Shanghai: SSE Composite Index (.SSEC) Renewed Uncertainty About Trade Deal

After ending the previous session moderately higher, stocks moved mostly lower over the course of the trading day on Thursday. With the drop on the day, the S&P 500 pulled back off yesterday’s record closing high.

The major averages staged a recovery attempt going into the close but remained stuck in the red. The Dow slid 140.46 points or 0.5 percent to 27,046.23, the Nasdaq edged down 11.62 points or 0.1 percent to 8,292.36 and the S&P 500 fell 9.21 points or 0.3 percent to 3,037.56.

The pullback on Wall Street came amid renewed uncertainty about the potential for a long-term U.S.-China trade deal.

Optimism about phase one of a trade deal contributed to recent strength on Wall Street, but a new report from Bloomberg said Chinese officials are casting doubts about reaching a comprehensive long-term trade agreement.

Upbeat earnings news helped limit the downside for the markets, however, with Apple (AAPL) and Facebook (FB) posting notable gains after reporting better than expected quarterly results.

On the U.S. economic front, the Labor Department released a report showing a modest increase in first-time claims for U.S. unemployment benefits in the week ended October 26th.

The report said initial jobless claims rose to 218,000, an increase of 5,000 from the previous week’s revised level of 213,000.

Economists had expected jobless claims to inch up to 215,000 from the 212,000 originally reported for the previous week.

A separate report from the Commerce Department showed personal income and spending both increased in line with economist estimates in the month of September.

The report said personal income increased by 0.3 percent in September after climbing by an upwardly revised 0.5 percent in August.

Meanwhile, the Commerce Department said personal spending edged up by 0.2 percent, matching the revised uptick seen in August.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 2,943.42.

The projected upper bound is: 2,997.01.

The projected lower bound is: 2,865.91.

The projected closing price is: 2,931.46.

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 29 white candles and 21 black candles for a net of 8 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 34.1084. This is not an overbought or oversold reading. The last signal was a sell 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 44.58. 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 sell 27 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 -88. This is not a topping or bottoming area. The last signal was a sell 12 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -10.265 at 2,929.056. Volume was 7% below average (neutral) and Bollinger Bands were 45% narrower than normal.

Open     High      Low     Close     Volume___
2,944.8432,946.7522,923.5172,929.05616,157,148,160
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,947.22 2,945.10 2,916.69
Volatility: 12 14 23
Volume: 14,473,729,024 17,377,531,904 23,155,736,576

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 0.4% above 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 16 periods.

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