Dow Jones Industrial Average (.DJI) extended losses after the minutes of the latest Federal Reserve policy meeting seemed to confirm that interest rates will remain on hold
The Dow and broader U.S. stock market extended losses Wednesday after the minutes of the latest Federal Reserve policy meeting seemed to confirm that interest rates will remain on hold for the foreseeable future, thrusting the warnings of Fed hawks to the garbage heap.
DOW, S&P 500 PARE PAINFUL LOSSES
All of Wall Street’s major indexes finished lower by the end of trading, mirroring a volatile pre-market for Dow futures. The Dow Jones Industrial Average was off by more than 120 points before paring some of its losses in the afternoon session. It would eventually settle down 100.72 points, or 0.4%, at 25,776.61.
The broad S&P 500 Index of large-cap stocks declined 0.3% to 2,856.27. Losses were primarily concentrated in primary industries, with energy stocks falling 1.5%. Shares of materials and industrials also declined sharply. On the opposite side of the ledger, utilities and health care companies rose sharply.
The technology-focused Nasdaq Composite Index fell 0.5% to settle at 7,750.84.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 26,321.35.
The projected lower bound is: 25,240.74.
The projected closing price is: 25,781.05.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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 66.8981. This is not an overbought or oversold reading. The last signal was a sell 20 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 44.60. 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 6 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 -12. This is not a topping or bottoming area. The last signal was a buy 5 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 sell 18 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -100.721 at 25,776.609. Volume was 20% below average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,723.63 26,080.06 25,434.09
Volatility: 18 13 20
Volume: 293,976,384 297,714,816 317,612,672
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 is currently 1.3% above its 200-period moving average and is in an downward 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 bearish on .DJI and have had this outlook for the last 10 periods.