Shanghai: SSE Composite Index (.SSEC) – Shares rebound on glimmers of progress in battling virus
Asian shares and U.S. futures rebounded on Monday as investors grasped at threads of hope that the battle against the coronavirus pandemic may be making some progress in some hard-hit areas.
Markets in Tokyo, Seoul and Sydney gained more than 2% in early trading and Hong Kong was up nearly 1%. New York futures were about 3% higher.
The gains followed another Friday session of losses after the U.S. said employers cut 701,000 more jobs than they added last month, the first drop in nearly a decade. Investors fled the market ahead of the weekend. Oil prices were higher.
Reports showed the number of people dying appeared to be slowing in New York City, Spain and Italy. The news was cautiously welcomed by leaders, who also noted that any gains could easily be reversed if people did not continue to adhere to strict lockdowns.
“Hundreds of people are passing away each day from the pandemic, but less so than previous days, giving markets hope that the lockdown measures are finally starting to prove effective,” Jeffrey Halley of Oanda said in a commentary.
“Like the rest of the world, financial markets are searching for any slivers of hope,” he said.
The situation has deteriorated in other areas as rates of infections have surged.
Japan’s prime minister, Shinzo Abe, was expected to announce a state of emergency on Tuesday to further curb public activity and contain the outbreak. Thailand’s government was reported to be considering expanding its 10 p.m. to 6 a.m. curfew.
The Nikkei 225 in Tokyo gained 2.4% to 18,249.57 while Hong Kong’s Hang Seng rose 0.9% to 23,439.92. South Korea’s Kospi added 2.2% to 1,763.93 while the S&P/ASX 200 in Sydney advanced 2.9% to 5,213.60. Shares also rose in Taiwan and Southeast Asia.
Shanghai’s market was closed for a public 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 2,884.45.
The projected upper bound is: 2,922.37.
The projected lower bound is: 2,593.20.
The projected closing price is: 2,757.79.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 50.8077. This is not an overbought or oversold reading. The last signal was a sell 4 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 43.58. 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 buy 42 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 54. This is not a topping or bottoming area. 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 4 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -16.651 at 2,763.987. Volume was 22% below average (neutral) and Bollinger Bands were 38% wider 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: 2,747.80 2,896.71 2,934.59
Volatility: 30 36 23
Volume: 23,490,953,216 30,589,382,656 20,994,068,480
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 5.8% below its 200-period moving average and is in an downward trend. Volatility is high 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 14 periods.