Dow Jones Industrial Average (.DJI) Climbs 275, Nasdaq Moves Up 87

Dow Jones Industrial Average (.DJI) Climbs 275, Nasdaq Moves Up 87

Dow Jones Industrial Average (.DJI) Climbs 275, Nasdaq Moves Up 87

Stocks closed broadly higher on Wall Street Wednesday, driving the S&P 500 and Nasdaq indexes to more record highs.

Technology stocks powered much of the rally as investors focused on the latest batch of mostly solid company earnings reports. The latest gains came as worries about the economic impact of the virus outbreak that originated in China continued to subside.

Health officials raised hopes that the spread of the virus is peaking after new cases dropped for a second straight day. Worries about the economic impact of the outbreak fueled a wave of selling that erased the market’s gains in January, but traders have since largely set aside their jitters.

The S&P 500 index is up 4.8% so far this month, on pace for its biggest monthly gain since June.

The S&P 500 index rose 21.70 points, or 0.6%, to 3,379.45. The Nasdaq climbed 87.02 points, or 0.9%, to 9,725.96. Both indexes have set all-time closing every day this week.

The Dow Jones Industrial Average gained 275.08 points, or 0.9%, to 29,551.42. The Russell 2000 index of smaller company stocks picked up 11.86 points, or 0.7%, to 1,689.38.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 30,188.70.

The projected lower bound is: 28,974.14.

The projected closing price is: 29,581.42.

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 83.1315. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 62.66. 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 16 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 124.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 275.080 at 29,551.420. Volume was 18% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open     High      Low     Close     Volume___
29,406.75029,568.57029,406.75029,551.420 309,528,992
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 29,020.06 28,621.44 27,126.94
Volatility: 20 14 15
Volume: 310,292,864 275,689,568 266,644,304

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 8.9% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 1 periods.

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