Dow Jones Industrial Average (.DJI) close broadly lower on Wall Street; trade in focus
Stocks closed modestly lower on Wall Street Monday as losses in technology, health care and financial companies outweighed gains elsewhere in the market.
The selling snapped a three-day winning streak for the S&P 500 and wiped out the index’s 0.2% gain last week.
Trading was mostly muted as investors looked ahead to a busy week of economic reports and an interest rate policy update from the Federal Reserve. The market also remained focused on developments in the trade negotiations between the U.S. and China.
Both sides have been working toward a limited “phase 1” deal that investors hope can at least avert new U.S. tariffs from kicking in on $160 billion of Chinese imports on Sunday. That would raise prices on key products, including cell phones and laptops, and threaten to affect consumers.
“With the deadline being Sunday, most people don’t think that new tariffs will be put in place, but they also don’t expect a phase 1 (deal) to be signed this week,” said Sam Stovall, chief investment strategist at CFRA.
The S&P 500 index lost 9.95 points, or 0.3%, to 3,135.96. The Dow Jones Industrial Average fell 105.46 points, or 0.4%, to 27,909.60. The Nasdaq dropped 34.70 points, or 0.4%, to 8,621.83. The Russell 2000 index of smaller company stocks gave up 4.22 points, or 0.3%, to 1,629.62.
PG&E vaulted 15.9% following late Friday’s news that the California utility has reached a tentative $13.5 billion settlement that resolves all major claims related to the deadly, devastating Northern California wildfires of 2017-2018. The blazes were blamed on PG&E’s outdated equipment and negligence. The deal, which still requires court approval, represents a key step in PG&E’s exit from Chapter 11 bankruptcy.
Wall Street is in for a busy week of economic reports culminating in a key update on whether Americans are still spending at a healthy pace.
Investors will get a revised report on worker productivity for the July-September quarter on Tuesday. Data released in November showed a decline for the first time since late 2015. On Wednesday the government will release its November report for consumer prices, which have been rising at a modest rate this year. A gauge on producer prices will be released on Thursday.
The Commerce Department’s report on retail sales coming up Friday is possibly the most important update this week. The economy has been propped up in part by solid spending and job growth.
Meanwhile, the Federal Reserve is scheduled to deliver its latest economic and interest rate policy update on Wednesday after a two-day meeting of its policymakers. The central bank is widely expected hold off on making any changes to interest rates.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 28,430.50.
The projected lower bound is: 27,371.54.
The projected closing price is: 27,901.02.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 80.9417. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 55.56. 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 7 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 3. This is not a topping or bottoming area. The last signal was a buy 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 12 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -27.879 at 27,881.721. Volume was 15% below average (neutral) and Bollinger Bands were 52% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,875.69 27,306.14 26,543.26
Volatility: 12 13 15
Volume: 226,050,144 246,092,096 269,474,496
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 is currently 5.0% above 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 3 periods.
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