Dow Jones Industrial Average (.DJI) closes at 3-week high as investors cheer start to earnings season

Dow Jones Industrial Average (.DJI) closes at 3-week high as investors cheer start to earnings season

Dow Jones Industrial Average (.DJI) closes at 3-week high as investors cheer start to earnings season

U.S. stocks finished at more-than-three-week highs Tuesday, as investors cheered a raft of largely upbeat corporate earnings reports, while considering the implications of a partial U.S.-China trade deal announced last Friday and the possibility of a breakthrough in Brexit negotiations.

How did major benchmarks perform?

The Dow Jones Industrial Average DJIA, +0.89% rose 237.44 points, or 0.9%, to end at 27,024.80, while the S&P 500 index SPX, +1.00% gained 29.53 points, or 1%, to finish at 2,995.68. The Nasdaq Composite Index COMP, +1.24% advanced 100.06 points, or 1.2%, to close at 8,148.71.

The gains saw the Dow and S&P 500 turn higher for the month, with the blue-chip gauge up 0.4% since the end of September and the S&P up 0.6% over the same stretch. The Nadaq added to its month-to-date gain, up 1.9%.

The S&P 500 ended about 1% below its record close of 3,025.86 set on July 26, while the Dow Jones Industrial Average closed around 1.2% below its record finish of 27,359.16 set on July 15, and the Nasdaq Composite finished around 2.3% away from its record close of 8,330.21 scored on July 26.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 27,826.66.

The projected lower bound is: 26,275.23.

The projected closing price is: 27,050.94.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 80.1695. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 57.75. 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 49 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 97. This is not a topping or bottoming area. The last signal was a buy 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 237.441 at 27,024.801. Volume was 5% below average (neutral) and Bollinger Bands were 19% narrower than normal.

Open     High      Low     Close     Volume___
26,811.19927,120.10926,811.19927,024.801 247,477,216
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,496.69 26,480.78 26,000.64
Volatility: 19 19 16
Volume: 235,421,968 256,166,928 282,676,832

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 3.9% 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 7 periods.

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