Dow Jones Industrial Average (.DJI) batch of stronger-than-expected earnings lifted investor sentiment

Dow Jones Industrial Average (.DJI) batch of stronger-than-expected earnings lifted investor sentiment

Dow Jones Industrial Average (.DJI) batch of stronger-than-expected earnings lifted investor sentiment

Stocks rose Tuesday on news that face-to-face talks between U.S. and Chinese trade negotiators would begin next week. A batch of stronger-than-expected earnings also lifted investor sentiment. 

The Dow Jones Industrial Average closed 177.29 points higher, or 0.7%, at 27,349.19. The S&P 500 also advanced 0.7% to close back above 3,000 at 3,005.47. The Nasdaq Composite gained 0.6% to close at 8,251.40.

More than 18% of S&P 500 companies have posted quarterly numbers this earnings season. Of those companies more than 78% have reported better-than-expected profits, according to FactSet data. Those companies have also seen their earnings grow by an aggregate of 3.6%.

Meanwhile, global stocks appeared to receive support from expectations that the European Central Bank (ECB) and the Federal Reserve could soon cut interest rates. The ECB is seen cutting rates by 10 basis points on Thursday, with the U.S. central bank expected to lower rates by 25 basis points at the end of the month.

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 26,525.23.

The projected upper bound is: 27,934.36.

The projected lower bound is: 26,820.29.

The projected closing price is: 27,377.33.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 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 48.8561. This is not an overbought or oversold reading. The last signal was a sell 3 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 69.61. 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 4 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 75. This is not a topping or bottoming area. The last signal was a sell 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 177.289 at 27,349.189. Volume was 10% below average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
27,231.85927,368.81127,204.58027,349.189 250,797,408

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

Moving Averages: 10-period     50-period     200-period
Close: 27,209.32 26,265.56 25,512.94
Volatility: 8 14 20
Volume: 231,544,128 262,780,768 317,695,392

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 7.2% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on .DJI and have had this outlook for the last 28 periods.

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