Shanghai: SSE Composite Index (.SSEC) traders looking ahead to a key government jobs report due out Friday
Shares were mostly lower in Asia on Wednesday as the euphoria from President Donald Trump’s truce with China’s Xi Jinping on trade faded.
The retreat followed yet another all-time high for the S&P 500 index, though trading in U.S. markets has been subdued ahead of an early closure on Wednesday for the July 4 holiday.
The Shanghai Composite index sank 0.8% to 3,019.80 while Japan’s Nikkei 225 index lost 0.8% to 21,587.40. The Hang Seng in Hong Kong declined 0.2% to 28,810.60. South Korea’s Kospi lost 1.2% to 2,097.40. But Australia’s S&P ASX 200 advanced 0.5% to 6,689.10 and the Sensex in India edged 0.1% higher to 39,837.36. Shares fell in Taiwan and most Southeast Asian markets.
Traders are waiting to see what will come from the latest truce in the U.S.-China trade war. They’re also looking ahead to a key government jobs report due out Friday, among other potential market-moving developments in the next few weeks.
Chinese Premier Li Keqiang said Tuesday that China plans to lift foreign ownership limits in securities, futures and life insurance by 2020, a year earlier than originally scheduled.
“The post-G20 optimism remained short-lived,” Ipek Ozkardeskaya of London Capital Group said in a commentary, “as White House trade adviser Navarro reminded investors that agreeing on a trade deal between the U.S. and China will certainly take time, although the countries moved in the right direction at the latest G-20 summit.”
U.S. markets will close early on Wednesday for Independence Day. On Tuesday, stocks shook off an early wobble to eke out small gains Tuesday, nudging the S&P 500 index to an all-time high for the second straight day.
The S&P 500 rose 0.3% to 2,973.01, the benchmark index’s seventh record high this year. The Dow Jones Industrial Average gained 0.3% to 26,786.68. The Nasdaq composite added 0.2% to 8,109.09. Small-company stocks fell, sending the Russell 2000 index down 0.6% to 1,560.54.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,136.93.
The projected lower bound is: 2,884.20.
The projected closing price is: 3,010.56.
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 25 white candles and 25 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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 86.0316. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 58.27. 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 37 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 76. This is not a topping or bottoming area. The last signal was a sell 0 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 26 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -28.680 at 3,015.263. Volume was 31% below average (neutral) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,003.54 2,957.31 2,798.23
Volatility: 21 27 27
Volume: 22,611,138,560 23,020,560,384 22,310,348,800
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
SSE COMPOSITE is currently 7.8% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 13 periods.
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