Dow Jones Industrial Average (.DJI) booked a dramatic reversal

Dow Jones Industrial Average (.DJI) booked a dramatic reversal

Dow Jones Industrial Average (.DJI) booked a dramatic reversal

The Dow Jones Industrial Average booked a dramatic reversal, ending higher after trading sharply lower on the session Thursday. The Dow DJIA, +1.14%closed 1.1%, or 258 points, at 23,136, on a preliminary basis, after being down by as many as 611 points, or 2.7%, at session lows. The day’s trade follows a historic surge for the Dow that saw it rally by more than 1,000 points, marking the largest single-session point gain in history. The S&P 500 index SPX, +0.86% also turned positive on the day, ending up 0.9% at 2,488.

The Nasdaq Composite IndexCOMP, +0.38% eked out a modest gain, rising 0.4% to finish at 6,579, based on the preliminary closing levels. The swings occurred within the final hour of trading in a see-saw day. On Wednesday, the Dow ended with a gain of 1,086.25 points, or 5%, at 22,878.45. The S&P 500 soared 5% to end at 2,467.70. The Nasdaq rose 5.8% to 6,554.36.

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 24,467.11.

The projected upper bound is: 24,224.66.

The projected lower bound is: 21,968.51.

The projected closing price is: 23,096.59.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 25 white candles and 25 black 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 41.9477. This is not an overbought or oversold reading. The last signal was a buy 0 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 40.64. 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 buy 1 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 0 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 12 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed up 260.371 at 23,138.820. Volume was 20% above average (neutral) and Bollinger Bands were 151% wider than normal.

Open High Low Close Volume___
22,629.06123,138.89122,267.42023,138.820 407,941,472

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

Moving Averages: 10-period 50-period 200-period
Close: 23,240.46 24,757.50 25,007.47
Volatility: 42 30 21
Volume: 472,192,800 390,831,936 337,235,872

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 AVERAGE is currently 7.5% 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 11 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.

Latest posts by HEFFX Australia (see all)

You must be logged in to post comments :  
CONNECT WITH