Shanghai: SSE Composite Index (.SSEC) stocks gain
Markets eased today as President Donald Trump called the US-China trade war “a little squabble” and tweeted that the deal would happen “much faster than people think.” The hope that China may boost the slowing economy with a fresh fiscal stimulus also pushed the markets up.
China’s Shanghai Composite Index rose 1.91% to 2,938.68 on May 15. The index opened higher today and maintained upward momentum during the day following the 0.8% gain in the S&P 500 (SPY) on May 14.
Economic data disappoint
While the indexes rose, China’s economic data disappointed analysts on May 15.
China’s industrial production growth dropped to 5.4% in April, lower than the expected 6.5% and even lower than March’s 8.5%. Its retail sales growth dropped to 7.2% in April compared to 8.7% in March. Its retail sales growth was also lower than the expected 8.6%.
Growth in fixed investments dropped to 6.1% in April compared to 6.3% in March. The expectation had been 6.4%.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 3,092.00.
The projected lower bound is: 2,785.26.
The projected closing price is: 2,938.63.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 67.3316. This is not an overbought or oversold reading. The last signal was a buy 3 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 41.13. 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 3 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 -43. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 20 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 55.067 at 2,938.678. Volume was 21% below average (neutral) and Bollinger Bands were 92% wider 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: 2,938.36 3,087.05 2,774.12
Volatility: 43 32 28
Volume: 24,594,448,384 36,248,170,496 20,956,280,832
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 5.9% above its 200-period moving average and is in an downward 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 out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 11 periods.