Dow Jones Industrial Average (.DJI) Boeing Shows Resilience; Apple Looks To Extend Rally

Dow Jones Industrial Average (.DJI) Boeing Shows Resilience; Apple Looks To Extend Rally

Dow Jones Industrial Average (.DJI) Boeing Shows Resilience; Apple Looks To Extend Rally

Boeing wrestled to a 0.8% advance, showing resilience as news reports suggested the fallout from Sunday’s Ethiopian Airways crash could affect Boeing’s order backlog. Similarities between the crash near Addis Ababa that killed 157 persons and Indonesia’s Lion Air crash in October have steered attention to a combination of faulty airspeed indicators and an automated flight control system. Authorities in Europe, India and Thailand joined those in China, Australia, Indonesia and several South American countries and airlines which have so far grounded the Boeing 737 Max aircraft until more is known.

Indonesia’s Lion Air was reportedly considering dropping a $22 billion order with Boeing for the 737 Max, and switching to a competing model of jet manufactured by Europe’s Airbus (EADSY). Bloomberg also reported Vietnam’s VietJet and Kenya Airways were also rethinking their standing orders for new 737 Max jets.

Boeing engine and components supplier Untied Technologies gained more than 1% in early trade.

Boeing stock dropped more than 11% for the week through Tuesday. The loss fell 2% below a double-bottom base buy point at 373.80. The pullback stopped short of triggering the automatic sell rule, but it ran afoul of the round-trip sell rule, which says not to let a gain cycle into a loss. Boeing shares broke out above the buy point on Jan. 31, and had advanced almost 20% through March 1.

Apple stock rose 0.8%, sending shares toward a fourth straight advance. An analyst report Tuesday said the company’s streaming video service, due for release on March 25, could reach 100 million subscribers within five years.

The tech heavyweight ended Tuesday up 4.6% so far for the week. The stock has climbed 28% from a Jan. 3 low, moving up the right side of a five-month consolidation.

The Dow Jones Industrial Average is feeling for direction, as efforts to capitalize on Monday’s strong rebound from technical support are hamstrung by Boeing’s difficulties. Overall, the Dow is in good shape — above its 200-day line and within about 5% of its record high from October. But the 26,000 level has started to act as a level of possible resistance, which could point to a period of sideways trade.

The Nasdaq and S&P 500 each are aiming to add a third straight advance. The big contest here is the 2,800 for the S&P 500. The index has seen four different advances since October capped right around the 2,800 level. It opens Wednesday an easy 0.3% below another test of that resistance. A decisive move above the mark could mark a change of mood for the index, and the current stock market uptrend.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,403.83.

The projected lower bound is: 25,107.57.

The projected closing price is: 25,755.70.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 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 68.7873. This is not an overbought or oversold reading. The last signal was a buy 2 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 55.32. 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 11 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 -38. This is not a topping or bottoming area. The last signal was a buy 1 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 9 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 148.230 at 25,702.891. Volume was 4% below average (neutral) and Bollinger Bands were 61% narrower than normal.

Open High Low Close Volume___
25,637.23025,776.49025,571.31125,702.891 331,410,048

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

Moving Averages: 10-period 50-period 200-period
Close: 25,707.40 24,966.08 25,139.86
Volatility: 10 17 20
Volume: 294,578,784 310,396,672 320,290,144

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 2.2% above its 200-period moving average and is in an downward 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 bearish on .DJI and have had this outlook for the last 3 periods.

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