Dow Jones Industrial Average (.DJI) Drops 207 Points as Caterpillar, Chevron Slide

Dow Jones Industrial Average (.DJI) Drops 207 Points as Caterpillar, Chevron Slide

Dow Jones Industrial Average (.DJI) Drops 207 Points as Caterpillar, Chevron Slide

The Dow Jones Industrial Average has slumped 207.16 points, or 0.8% to 224,712.50, with Boeing (BA), Caterpillar (CAT), Chevron (CVX) and 3M (MMM) accounting for more than half the drop. Boeing and Caterpillar, in particular, are considered to be heavily exposed to the trade war with China. S&P 500 have fallen 0.6%, while Nasdaq Composite has dropped 0.4%.

Stocks on Wall Street closed sharply lower and global stocks tumbled on Wednesday, July 11, following the latest escalation in trade war rhetoric from the White House, which published a list of $200 billion worth of China-made goods it said will be hit with fresh tariffs.

The list, which includes products across sectors such as consumer technology, agriculture and automobile parts and equipment, came just days after Donald Trump unveiled $34 billion in tariffs on Chinese goods that were immediately reciprocated by Beijing.

“For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition,” U.S. Trade Representative Robert Lighthizer said in a statement. “Rather than address our legitimate concerns, China has begun to retaliate against U.S. products … There is no justification for such action.”

Overall, the bias in prices is: Sideways.

The projected upper bound is: 25,228.55.

The projected lower bound is: 24,193.84.

The projected closing price is: 24,711.20.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.

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 87.2632. 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 52.50. 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 107 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -219.211 at 24,700.449. Volume was 34% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
24,789.48024,815.16024,663.82024,700.449 237,371,392

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

Moving Averages: 10-period 50-period 200-period
Close: 24,429.70 24,657.60 24,400.78
Volatility: 12 13 18
Volume: 252,305,072 325,286,240 372,483,200

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 AVERAGE is currently 1.2% above its 200-period moving average and is in an downward trend. Volatility is 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 12 periods.

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