Dow Jones Industrial Average (.DJI) dropped as a sharp decline in 3M shares dragged the 30-stock index

Dow Jones Industrial Average (.DJI) dropped as a sharp decline in 3M shares dragged the 30-stock index

Dow Jones Industrial Average (.DJI) dropped as a sharp decline in 3M shares dragged the 30-stock index

The Dow Jones Industrial Average dropped on Thursday as a sharp decline in 3M shares dragged the 30-stock index.

The Dow fell 134.97 points to 26,462.08 as shares of 3M dropped 12.9% after the company reported earnings that were much lower than analysts had expected. The company also slashed its full-year outlook and announced plans to cut 2,000 jobs worldwide. 3M shares posted their worst day since Oct. 19, 1987, also known as Black Monday.

The S&P 500 and Nasdaq Composite fared better than the Dow, as Facebook and Microsoft jumped on strong quarterly numbers.

The S&P 500 ended the day marginally lower at 2,926.17, with gains in the health care and communications sectors offset a 2% drop in industrials. The Nasdaq, meanwhile, rose 0.2% to 8,118.68 and hit an intraday record.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,937.68.

The projected lower bound is: 26,027.93.

The projected closing price is: 26,482.81.

Candlesticks

A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 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.

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 62.5348. This is not an overbought or oversold reading. The last signal was a sell 1 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 58.96. 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 41 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 20. This is not a topping or bottoming area. The last signal was a sell 0 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 17 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -134.971 at 26,462.080. Volume was 9% below average (neutral) and Bollinger Bands were 51% narrower than normal.

Open High Low Close Volume___
26,426.36926,536.48026,310.27926,462.080 296,727,648

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 26,462.84 25,991.25 25,354.35
Volatility: 8 11 19
Volume: 295,953,984 293,844,032 315,396,384

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 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 extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 15 periods.

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