Boeing has contributed to a substantial underperformance between the Dow Jones Industrial Average (.DJI) and its stock-index peers

Boeing has contributed to a substantial underperformance between the Dow Jones Industrial Average (.DJI) and its stock-index peers

Boeing has contributed to a substantial underperformance between the Dow Jones Industrial Average (.DJI) and its stock-index peers

The stock market is enjoying a solid week so far, but investors might not know it by gauging the performance of the Dow Jones Industrial Average, which by a few measures is registering its widest divergence with its U.S. peers over a two-day stretch in years.

As of Tuesday’s close, the Dow DJIA, -0.38% was up 0.4% over the past two sessions, an otherwise respectable early start to a week, if not for the outsize performance of the S&P 500 index SPX, +0.30% up 1.8% week to date, and the Nasdaq Composite Index COMP, +0.44% , which is enjoying a two-day return of 2.5%, according to FactSet data.

That two-day outperformance between the Dow and S&P 500, a gap of 1.36 percentage points, is the widest since a similar stretch ended Oct. 21, 2014, when the broad-market gauge beat the 123-year-old blue-chip index by a 1.44 percentage-point margin, according to Dow Jones Market Data.

Moreover, the last time the S&P 500 outperformed the Dow by 0.65 percentage points or better on successive days was the two-day period ended March 18, 2009.

Separately, the Nasdaq is seeing its biggest two-day outperformance, 2.05 percentage points, since the period ended Oct. 20, 2017, when it outstripped the Dow by 2.29 percentage points.

Of course, Boeing Co.’s BA, -6.15% latest 737 Max 8 tragedy is the apparent cause for the current disparity in indexes, which tend to move in lockstep more than they have this week.

Declines in the airline maker’s shares come as regulators across the globe have taken the unusual step of grounding the 737 Max jets on the heels of Sunday’s Ethiopian Airlines crash, even after the U.S. Federal Aviation Administration declared the planes airworthy.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,252.02.

The projected lower bound is: 24,953.94.

The projected closing price is: 25,602.98.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

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 44.8317. This is not an overbought or oversold reading. The last signal was a buy 1 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 51.50. 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 sell 10 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 -77. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -96.221 at 25,554.660. Volume was 10% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open High Low Close Volume___
25,600.30125,675.43925,522.17025,554.660 312,517,344

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

Moving Averages: 10-period 50-period 200-period
Close: 25,735.62 24,913.27 25,135.41
Volatility: 9 17 20
Volume: 286,975,360 310,498,656 320,368,352

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

DJ INDU AVERG is currently 1.7% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 2 periods.

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