Shanghai: SSE Composite Index (.SSEC) U.S.-China trade talks intensify
Stocks closed mostly higher Thursday, with the S&P 500 extending its win streak to a sixth session, as investors continued to monitor trade talks between the U.S. and China, which are reportedly in their final stretch.
How did the benchmarks fare?
The Dow Jones Industrial Average DJIA, +0.64% rose 166.50 points, or 0.6%, to 26,384.63, powered higher by shares of Boeing Inc. BA, +2.89% and Dow Inc. DOW, +4.98% .
The S&P 500 index SPX, +0.21% added 5.99 points, or 0.2%, to 2,879.39, matching its six-day winning streak from February 2018. The Nasdaq Composite Index COMP, -0.05% bucked the trend to fall 3.77 points to 7,891.78.
What drove the market?
U.S.-China trade negotiations remain in the spotlight. Expectations for Washington and Beijing to resolve their differences have been cited as a driver of stock-market gains since late last year. President Donald Trump may announce plans for a summit with China’s President Xi Jinping as early as Thursday when he meets the country’s vice premier, according to The Wall Street Journal.
Meanwhile, New York Fed President John Williams told the Community Bankers Conference in New York that current monetary policy is appropriate for how the economy is performing. He also added that changes in long-run economic fundamentals, like lower growth potential and projected inflation, “means that interest rates are likely to be lower for longer than what we saw in the 1990s.”
In separate appearances, Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker suggested more interest-rate hikesmay eventually be needed.
New applications for unemployment benefits fell to 202,000 in the week ended March 30, the lowest level since 1969, the government said. Economists surveyed by MarketWatch expected first-time claims for jobless benefits to rise to 216,000 from 211,000 the previous week.
The main event on the economic calendar will be Friday’s release of the March employment report. Economists surveyed by MarketWatch forecast the U.S. economy added 179,000 jobs last month after a paltry increase of 20,000 in nonfarm payrolls in February.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 3,393.19.
The projected lower bound is: 3,127.43.
The projected closing price is: 3,260.31.
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 34 white candles and 16 black candles for a net of 18 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 96.0737. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 71.12. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 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 172.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 30.276 at 3,246.571. Volume was 91% above average (neutral) and Bollinger Bands were 23% wider 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: 3,106.27 2,888.54 2,744.95
Volatility: 30 29 27
Volume: 38,660,648,960 32,911,112,192 18,788,777,984
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 18.3% above its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 52 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an overbought condition.