Dow Jones News
The Dow Jones Industrial Average has been relying on its powerhouse Apple to shake off its coronavirus damage, but that’s about to change once the juggernaut’s stock split ends its dominance in the 30-stock gauge.
At Wednesday’s high of $468 that pushed Apple into the $2 trillion club, the tech giant’s weighting in the Dow stood at 11.4%, by far the biggest. Apple’s 4-for-1 split, which takes effect Aug. 31, will drop its price to about $117 and boot its ranking all the way down to 16th or 17th. The new Apple weighting in the Dow will fall to just about 3.1%, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The century-old blue-chip index is price-weighted, meaning stocks with higher share prices are given greater weight in the gauge. UnitedHealth has the second-biggest weighting, at 7.8%. Most other equity indexes are weighted by market capitalization, including the S&P 500 and the Nasdaq Composite. Apple has the No.1 position in the S&P 500 because of its peak market value.
The Dow Jones Industrial Average represents 30 large and well-known U.S. companies covering all industries with the exception of transportation and utilities. Stocks are selected by editors of The Wall Street Journal. The index is price weighted.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 26,699.87.
The projected upper bound is: 28,920.00.
The projected lower bound is: 26,589.45.
The projected closing price is: 27,754.72.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 30.6439. This is not an overbought or oversold reading. The last signal was a sell 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 62.99. 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 50 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 27. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 46.850 at 27,739.730. Volume was 24% below average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume 27,622.680 27,781.461 27,526.250 27,739.730 306,052,896
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 27,777.20 26,539.93 26,266.60 Volatility: 11 29 48 Volume: 328,885,152 391,523,552 396,242,752
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.
DJ INDU AVERG is currently 5.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 22 periods.