Donald Trump’s easing of tariffs sent the Dow Jones Industrial Average (.DJI) higher

Donald Trump’s easing of tariffs sent the Dow Jones Industrial Average (.DJI)  higher

Donald Trump’s easing of tariffs sent the Dow Jones Industrial Average (.DJI) higher

News that Donald Trump would delay the imposition of tariffs on some Chinese goods sent the Dow Jones rocketing today. Beware, though, because it’s a head fake before the inevitable crash.

The Dow Jones Industrial Average rose 372 points to 26,280, an increase of 1.44 percent on Tuesday. That’s because Donald Trump and the Treasury Department announced that additional tariffs on laptops, cell phones, video games, and certain types of toys and apparel will not be instituted until Dec. 15.

“Trump’s trade war strategy is brilliant. While the American economy has improved under him, it remains weak in many areas, as we see from declining corporate earnings. He is using the trade war to make hay. There’s no real downside to this strategy, and it may result in a significant difference in America’s trade deficit.”

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 26,936.88.

The projected lower bound is: 25,681.35.

The projected closing price is: 26,309.11.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with DJ INDU AVERG). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 73.4368. 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 44.38. 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 5 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 -46. This is not a topping or bottoming area. The last signal was a buy 3 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 16 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 372.541 at 26,279.910. Volume was 12% above average (neutral) and Bollinger Bands were 59% wider than normal.

Open     High      Low     Close     Volume___
25,888.88126,426.97125,833.25026,279.910 309,613,248
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,253.99 26,600.40 25,582.48
Volatility: 26 15 20
Volume: 324,735,872 266,876,832 313,916,448

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 2.7% above 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 moderate flows of volume out of .DJI (mildly bearish). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 10 periods.

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