Home Headline News Dow Jones Industrial Average (.DJI) comeback was capped by Beijing’s latest terrifying...

Dow Jones Industrial Average (.DJI) comeback was capped by Beijing’s latest terrifying provocations in the US-China trade war

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Les marchés actions américains ont ouvert en léger recul mardi, malgré la possibilité de voir la Banque centrale européenne (BCE) augmenter temporairement ses rachats d'actifs mensuels et en dépit du net rebond des mises en chantier en avril aux Etats-Unis. Quelques minutes après le début des échanges, le Dow Jones perdait 0,16%, le Standard & Poor's 500 0,13% et le Nasdaq 0,03%. /Photo d'archives/REUTERS/Carlo Allegri

Dow Jones Industrial Average (.DJI) comeback was capped by Beijing’s latest terrifying provocations in the US-China trade war

A hesitant Dow crept toward a paltry recovery on Thursday following a two-day bloodbath that wiped nearly 500 points off the index. The trade war continues to command Wall Street’s undivided attention, and Beijing’s latest provocations should terrify investors.

DOW CREEPS TOWARD MEAGER RECOVERY

Wall Street betrayed a lack of conviction during the Thursday trading session. As of 2:04 pm ET, the Dow Jones Industrial Average had inched up 31.77 points or 0.13% to 25,158.18. The S&P 500 climbed 3.61 points or 0.13% to 2,786.65, and the Nasdaq rose a disappointing 10.32 points or 0.14% to 7,557.63.

BEIJING INTENSIFIES THE RUTHLESS TRADE WAR RHETORIC

Stocks eyed a shaky recovery after bond yields rose, reducing concerns about a looming recession. However, that comeback will likely be hampered by yet another alarming escalation in trade war rhetoric by a senior Chinese diplomat.

Earlier today, Chinese vice-foreign minister Zhang Hanhui warned the United States that Beijing is “not afraid” of a trade war. He slammed President Trump’s administration from engaging in “naked economic terrorism” and “bullying.”

“We oppose a trade war but are not afraid of a trade war. This kind of deliberately provoking trade disputes is naked economic terrorism, economic homicide, economic bullying,” Zhang said, according to the South China Morning Post.

Just one day prior, an editorial in the Communist Party’s official newspaper savagely rebuked the Trump administration and called for China to weaponize its dominant positionin the global rare earths market to cripple US manufacturing.

“Don’t say we didn’t warn you,” the editorial thundered, unleashing an ominous phrase that carries even more weight in Chinese than in English.

DOW EDGES CLOSER TO PUNISHING WEEKLY LOSS

Even if the Dow does manage to crawl its way toward a tepid gain on Thursday, the stock market bellwether remains on track to record a punishing sixth straight weekly loss.

On May 29, the Dow plunged 221.36 points or 0.87% to 25,126.41; altogether, the DJIA has lost 459.28 points during the holiday-shortened trading week.

The S&P 500 slid 19.37 points or 0.69% to settle at 2,783.02 on Wednesday, and the Nasdaq dropped 60.04 points or 0.79% to 7,547.31 as investors reduced exposure to riskier assets.

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 25,730.11.

The projected upper bound is: 25,719.13.

The projected lower bound is: 24,591.94.

The projected closing price is: 25,155.53.

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 26 white candles and 24 black candles for a net of 2 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 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 19.1956. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 25 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 35.00. 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 11 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 -149.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 23 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 43.471 at 25,169.881. Volume was 28% below average (neutral) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
25,139.93925,218.53925,066.75025,169.881 215,244,416

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

Moving Averages: 10-period 50-period 200-period
Close: 25,568.07 26,033.21 25,430.00
Volatility: 13 14 20
Volume: 278,422,592 287,730,720 318,868,672

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 1.0% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .DJI and have had this outlook for the last 15 periods.

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