Dow Jones Industrial Average (.DJI) end higher after report says U.S. considering easing China tariffs

Dow Jones Industrial Average (.DJI) end higher after report says U.S. considering easing China tariffs

Dow Jones Industrial Average (.DJI) end higher after report says U.S. considering easing China tariffs

Stocks extended their win streak to three days Thursday after The Wall Street Journal reported that the Trump administration was debating whether to ease tariffs on Chinese imports in a bid to calm markets and ease tensions with Beijing.

How did the benchmarks fare?

The Dow Jones Industrial Average DJIA, +0.67% erased an earlier loss to rise 162.94 points, or 0.7%, to 24,370.10 in choppy trade. The blue-chip gauge was up 267 points at its session high. The S&P 500 index SPX, +0.76% added 19.86 points, or 0.8%, to 2,635.96 and the Nasdaq Composite Index NQH9, +0.23%gained 49.77 points, or 0.7%, to finish at 7,084.46.

What drove the market?

U.S. officials are considering lifting some tariffs on Chinese products in an effort to elicit more concessions from China for a bilateral trade deal and to stabilize the financial markets, the Journal reported.

However, the plan faces resistance from U.S. Trade Representative Robert Lighthizer who doesn’t want the U.S. to come across as weak, the report said. A Treasury spokesman said that neither Treasury Secretary Steven Mnuchin nor Lighthizer “have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China.”

Aside from trade, investors focused on banking industry performance after Morgan Stanley announced earnings and revenue that fell short of analyst expectations. Chief Executive Officer James Gorman reassured investors, however, that, “We do not believe the fourth quarter is the new normal,” while adding that the bank’s performance in the first quarter of 2019 has already begun to rebound.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 25,469.16.

The projected lower bound is: 23,235.01.

The projected closing price is: 24,352.09.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 10 white candles and 0 black candles for a net of 10 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 87.0237. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 57.46. 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 15 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 162.939 at 24,370.100. Volume was 18% below average (neutral) and Bollinger Bands were 25% wider than normal.

Open High Low Close Volume___
24,147.09024,474.46124,088.90024,370.100 288,587,680

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

Moving Averages: 10-period 50-period 200-period
Close: 23,918.16 24,346.00 24,966.59
Volatility: 18 30 20
Volume: 313,356,416 367,888,544 328,686,880

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 2.4% below its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 4 periods.

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