Dow Jones Industrial Average (.DJI) Energy leads Wall St rebound as trade worries ease

Dow Jones Industrial Average (.DJI) Energy leads Wall St rebound as trade worries ease

Dow Jones Industrial Average (.DJI) Energy leads Wall St rebound as trade worries ease

  • GE posts best day since April 2015
  • Oil jumps as U.S. pushes allies to halt imports from Iran
  • Lennar rises after strong quarterly results
  • Indexes up: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.4 pct

U.S. stocks found their footing on Tuesday, helped by gains in the energy, technology and consumer discretionary sectors after a sharp sell-off a day earlier on spiraling global trade tensions.

Energy stocks SPNY added the most gains among the S&P 500’s 11 major sectors, climbing 1.4 percent as Washington pushed allies to halt imports of Iranian crude, which lifted oil prices more than 2 percent.

Technology stocks SPLRCT advanced after having slid on Monday upon conflicting statements from Trump administration officials on restrictions on foreign investment in U.S. technology firms. Apple Inc, which rose 1.2 percent, snapped a three-day losing streak.

The Dow Jones Industrial Average DJI rose 30.31 points, or 0.12 percent, to 24,283.11, the S&P 500 SPX gained 5.99 points, or 0.22 percent, to 2,723.06 and the Nasdaq Composite IXIC added 29.62 points, or 0.39 percent, to 7,561.63.

In their first day of trading after having been removed from the Dow Industrials, General Electric Co shares rose 7.8 percent, the greatest percentage gain on the S&P 500 and the stock’s biggest one-day gain in more than three years. The company said it would spin off its healthcare business and divest its stake in oil-services company Baker Hughes.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 24,809.90.

The projected lower bound is: 23,744.72.

The projected closing price is: 24,277.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 26.5750. This is not an overbought or oversold reading. The last signal was a buy 0 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 37.36. 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 97 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 -118.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 6 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed up 30.309 at 24,283.109. Volume was 20% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
24,281.89124,384.21124,241.22124,283.109 301,133,728

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

Moving Averages: 10-period 50-period 200-period
Close: 24,739.10 24,651.98 24,292.45
Volatility: 10 14 18
Volume: 396,701,184 355,214,336 376,427,744

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 0.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 2 periods.

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