Technology sectors helped limit losses and lifted the NASDAQ Composite (.IXIC)

Technology sectors helped limit losses and lifted the NASDAQ Composite (.IXIC)

Technology sectors helped limit losses and lifted the NASDAQ Composite (.IXIC) 

The S&P 500 and Dow slipped in choppy trading on Monday following losses in energy and financial stocks but gains in technology sectors helped limit losses and lifted the Nasdaq.

Energy stocks sank 1 percent, weighed down by lower crude oil prices and Halliburton’s warning that fourth-quarter earnings would miss estimates amid ongoing weakness in the North American hydraulic fracturing market.

Halliburton fell 2.8 percent and rival oilfield services provider Schlumberger was down 2.9 percent.

Helping the Nasdaq and limiting losses on the S&P 500 were gains in technology stocks. The beaten-down technology index was up 1 percent.

Microsoft gained 1.4 percent and Intel, with help from a Nomura upgrade, jumped 3 percent at the start of a big week for technology earnings.

Amazon and Alphabet also rose. Both are due to report results later this week, while Facebook and Apple, reporting next week, gained about 1 percent.

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 7,728.47.

The projected upper bound is: 7,704.24.

The projected lower bound is: 7,218.20.

The projected closing price is: 7,461.22.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 25.6201. This is not an overbought or oversold reading. The last signal was a buy 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 37.29. 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 6 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 -63. This is not a topping or bottoming area. The last signal was a buy 4 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 13 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 19.603 at 7,468.629. Volume was 0% above average (neutral) and Bollinger Bands were 135% wider than normal.

Open High Low Close Volume___
7,486.7397,520.5357,424.7377,468.629 546,419,136

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,510.77 7,861.86 7,518.25
Volatility: 36 20 21
Volume: 617,512,832 556,930,880 532,228,320

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

NASDAQ COMPOSITE is currently 0.7% below 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 volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 12 periods.

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