Dow Jones Industrial Average (.DJI) close at records on positive expectations around U.S.-China trade
Major U.S. stock-market benchmarks ended Monday’s session at records as investors remained attuned to developments in the U.S.-China trade relationship and cheered a wave of merger activity.
How did the major benchmarks fare?
The Dow Jones Industrial Average (DJIA) advanced 190.85 points, or 0.7%, to end at 28,066.47, while the Nasdaq Composite (COMP) climbed 112.60 points, or 1.3%, to 8,632.49. The S&P 500 index (SPX) ended 23.35 points higher at 3,133.64, a gain of 0.8%.
The Dow ended the day above its previous closing high of 28,036.22 set Nov. 18, the S&P 500 surpassed its previous closing record of 8,570.66 set on Nov. 19, while the Nasdaq finished the session above its last closing high of 3,122.03 set on Nov. 18. All three benchmarks also set new intraday highs on Monday. What drove the market?
Analysts said investors remain sensitive to headlines around U.S.-China trade talks, with remarks Saturday by Robert O’Brien, the U.S. national security adviser, in the spotlight. O’Brien told reporters at a security conference in Halifax that a “phase-one” deal between the U.S. and China by the end of the year still appeared possible, Reuters reported, while also warning that the U.S. would not “turn a blind eye to what’s happening in Hong Kong or what’s happening in the South China Sea, or other areas of the world where we’re concerned about China’s activity.”
Contributing to the positive tone, the Chinese government on Sunday released a document calling for more protection of intellectual-property rights.
“The Chinese government have typically offered to purchase more agricultural goods from the U.S., but that will only gain a limited amount of traction with the Trump administration, but genuine progress regarding IP could help get phase one wrapped up,” said David Madden, market analyst at CMC, in a note.
Meanwhile, the pro-democracy opposition in Hong Kong swept to a resounding victory in weekend elections, winning a commanding majority in the vote for 452 district council seats. District councils have little power, but the showing could put pressure on the government to negotiate with protesters demanding democratic elections for the city’s legislature and chief executive. The result is also seen as a defeat for Beijing, which has pushed Hong Kong to crack down on protests.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 27,327.99.
The projected upper bound is: 28,577.17.
The projected lower bound is: 27,595.36.
The projected closing price is: 28,086.26.
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 27 white candles and 23 black candles for a net of 4 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 54.8316. 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 69.85. 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 3 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 122.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 2 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 190.852 at 28,066.471. Volume was 5% below average (neutral) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,876.16 27,123.89 26,440.32
Volatility: 7 12 15
Volume: 255,312,160 252,922,096 272,303,968
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 AVERG gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 6.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 17 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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