IXIC dominated by bears dragging the market lower throughout the day
Nasdaq Composite Index (IXIC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IXIC finished Wednesday at 11050.47 losing $139.85 (-1.25%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 11127.98, the market confirmed its breakout through the prior session low after trading up to $81.55 below it intraday.
Daily Candlestick Chart (IXIC as at Sep 16, 2020):
Wednesday's trading range has been $198.99 (1.77%), that's slightly below the last trading month's daily average range of $226.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IXIC.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Despite a strong opening the stock index closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, IXIC actually gained 1.87% on the following trading day.
After having been unable to move above 11244.46 in the prior session, the index ran into sellers again around the same price level today, missing to move higher than 11245.42.
Although the Nasdaq is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nasdaq Comp.. Out of 454 times, IXIC closed higher 57.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.10% with an average market move of 1.07%.