Dow Jones Industrial Average (.DJI) biggest point gain in history
Stocks on Wednesday climbed back from their epic Christmas Eve plunge as all three indexes posted big gains.
The Dow Jones industrial average roared 1,086 points, or 4.98 percent — its biggest point gain in history — as stocks snapped a four-day losing streak that had placed the 10-year bull market on the edge of death Monday.
Wednesday’s 4.96 percent climb of nearly 117 points in the S&P 500 is the best Dec. 26 on record, surpassing the 3.06 percent gain set in 1973, according to S&P Dow Jones indices.
It was the largest daily percentage gain for markets since March 2009. The Nasdaq composite rose 361 points, 5.8 percent, to close at 6,554. Both the S&P and the Nasdaq enjoyed their best day in three years. But despite the big gains, all three indexes are still in the loss column as the year’s end approaches.
Trump’s criticism of the Fed and Powell has shaken Wall Street as it weathers its worst December in history. But Wednesday’s gains were broad and deep, with all 30 Dow components tilting positive. The Dow rose on the tails of surging blue chips Nike and Microsoft, each posting gains around 7 percent. The technology sector was strong, with Facebook rising 8 percent and Amazon nearly 10 percent. Consumer discretionary, energy and technology stocks paced the broad S&P 500.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 24,502.55.
The projected upper bound is: 23,949.95.
The projected lower bound is: 21,708.49.
The projected closing price is: 22,829.22.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 19.2797. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 14 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 37.45. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 14 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 11 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed up 1,086.250 at 22,878.449. Volume was 28% above average (neutral) and Bollinger Bands were 154% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 23,379.31 24,799.73 25,016.81
Volatility: 42 30 21
Volume: 465,831,520 388,419,584 337,435,552
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 AVERAGE is currently 8.5% below 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 10 periods.
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