Dow Jones Industrial Average (.DJI) adds Dow Inc, removes DowDuPont

Dow Jones Industrial Average (.DJI) adds Dow Inc, removes DowDuPont

Dow Jones Industrial Average (.DJI) adds Dow Inc, removes DowDuPont

Dow Inc will replace DowDuPont Inc in the Dow Jones Industrial Average following the chemical corporation’s breakup into three smaller companies, S&P Dow Jones Indices said on Tuesday.

The rearrangement of the widely followed blue-chip index of 30 companies would happen on April 2 before the U.S. stock market opens, S&P Dow Jones Indices said in a statement.

DowDuPont, formed by the $130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is in the process of splitting itself up into three companies called Dow, DuPont and Corteva Agriscience.

Dow Inc will also join the S&P 500 on April 2, replacing Brighthouse Financial Inc , S&P Dow Jones Indices said in a separate statement.

Replacing DowDuPont with Dow will maintain the benchmark’s exposure to the materials sector, and its price weight within the Dow Jones Industrial Average will be similar to DowDuPont’s before its breakup, S&P Dow Jones Indices said.

Known for its inclusion of large U.S. companies as well as its relatively few members compared to other barometers, the Dow has changed components roughly every two years over the past 20 years. The most recent such move came last June, when longtime member General Electric Co was replaced by Walgreens Boots Alliance Inc.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,223.97.

The projected lower bound is: 25,157.96.

The projected closing price is: 25,690.97.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white 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.

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 21.7271. This is not an overbought or oversold reading. The last signal was a sell 4 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 50.99. 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 20 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 -3. This is not a topping or bottoming area. The last signal was a buy 10 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 18 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 140.900 at 25,657.730. Volume was 12% below average (neutral) and Bollinger Bands were 66% narrower than normal.

Open High Low Close Volume___
25,649.56125,796.28925,544.77925,657.730 305,107,712

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

Moving Averages: 10-period 50-period 200-period
Close: 25,744.82 25,361.21 25,184.42
Volatility: 14 13 20
Volume: 354,850,688 314,585,664 321,156,352

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 1.9% 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 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 12 periods.

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