Dow Jones Industrial Average (.DJI) concerns about weakness in coming first-quarter results
The market struggled most of the session on concerns about weakness in coming first-quarter results. A number of companies, including Dow-component Walgreens Boots Alliance Inc. WBA, +0.68% have dialed back earnings outlooks for 2019.
Investors are also awaiting concrete progress on U.S.-China trade negotiations which will be symbolically concluded with a meeting between President Donald Trump and his Chinese counterpart Xi Jinping.
U.S. factory orders fell 0.5% in February, steeper than the 0.4% decline forecast by economists in a MarketWatch poll. The data show that growth in the manufacturing continues to expand but manufacturers are becoming more cautious.
On Friday, the March employment report showed that the U.S. economy added 196,000 new jobs, above consensus expectations of 177,000 in a MarketWatch poll of economists. The number alleviated some worries that U.S. economic growth was losing momentum in tandem with increasing signs of slowdown elsewhere in the world.
In Europe, market participants were watching the latest development surrounding Britain’s attempt to extricate itself from the European Union. Brussels was set to decide on an extension to the so-called Brexit deadline, possibly setting a date at the end of the year or even in 2020.
What Shayne ‘Jack’ Heffernan is saying?
“There are many skeptics of this bull market, and so when the market goes up a bit as it did last week, they take the opportunity to get out,” he said.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 26,882.74.
The projected lower bound is: 25,863.45.
The projected closing price is: 26,373.10.
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.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 84.1377. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 63.68. 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 29 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 86. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -83.971 at 26,341.020. Volume was 32% below average (neutral) and Bollinger Bands were 40% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,073.58 25,672.18 25,230.95
Volatility: 9 13 20
Volume: 262,369,584 303,204,000 316,433,216
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 down today (bearish) 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 4.4% 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 moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 3 periods.