Dow Jones Industrial Average (.DJI) Advances 174, Nasdaq Climbs 108

Dow Jones Industrial Average (.DJI) Advances 174, Nasdaq Climbs 108

Dow Jones Industrial Average (.DJI) Advances 174, Nasdaq Climbs 108

Stocks closed broadly higher on Wall Street Monday, sending the S&P 500 and Nasdaq indexes to all-time highs.

Technology stocks accounted for much of the rally, which added to the market’s gains from last week. Retailers, restaurant chains and other companies that rely on consumer spending also notched solid gains.

Traders also shifted money into U.S. government bonds, sending yields lower, and they bid up the price of gold. Both can signal uneasiness in the market. Investors mostly shunned energy and materials stocks , which depend upon economic growth more than other sectors do.

The S&P 500 index gained 24.38 points, or 0.7%, to 3,352.09. The index’s set record highs twice last week. The Dow Jones Industrial Average rose 174.31 points, or 0.6%, to 29,276.82.

The Nasdaq climbed 107.88 points, or 1.1%, to 9,628.39. The Russell 2000 index of smaller company stocks picked up 10.89 points, or 0.7%, to 1,667.67.

Markets in Europe and Asia closed mostly lower.

The yield on the 10-year Treasury edged lower to 1.56% from 1.57% late Friday.

Wall Street kicked off this week following the biggest weekly gain for the benchmark S&P 500 index since June. Stronger-than-expected company earnings reports and solid economic data on hiring have helped assuage traders’ fears over the virus outbreak in China. Investors are also feeling hopeful that central banks and governments around the world can support markets with rate cuts and stimulus.

Businesses around the world are continuing to feel the impact of the new corona virus. Sony and Amazon became the latest companies to pull out of a major European technology show due to fears over the outbreak.

The virus has now infected more than 40,600 people, with most of those cases and almost all the deaths occurring in China. The world’s second-largest economy has been taking more measures to soften the economic blow, including funding low-interest loans to businesses while promising tax cuts and subsidies.

Companies are more than halfway through their latest round of earnings and 65 companies in the S&P 500 will report this week. Toy maker Hasbro and hotel operator Hilton will release results on Tuesday. CVS Health will release its results on Wednesday and Kraft Heinz will report earnings on Thursday.

Investors will also have several economic reports to consider this week, including the government’s consumer price index update for January, along with retail sales and industrial production reports.

Benchmark crude oil fell 75 cents to settle at $49.57 a barrel. Brent crude oil, the international standard, dropped $1.20 to close at $53.27 a barrel. Wholesale gasoline was unchanged at $1.52 per gallon. Heating oil fell 3 cents to $1.61 per gallon. Natural gas fell 9 cents to $1.77 per 1,000 cubic feet.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,900.81.

The projected lower bound is: 28,699.04.

The projected closing price is: 29,299.92.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 84.6933. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 58.40. 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 14 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 68. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 174.311 at 29,276.820. Volume was 2% below average (neutral) and Bollinger Bands were 13% wider than normal.

Open     High      Low     Close     Volume___
28,995.66029,278.07028,995.66029,276.820 257,458,192
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 28,883.02 28,569.20 27,098.29
Volatility: 20 13 15
Volume: 317,041,664 270,278,688 266,671,072

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 8.0% 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 6 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH