Dow Jones Industrial Average (.DJI) Fall Solidly After Long Weekend
Dow Jones futures fell solidly Monday night, along with S&P 500 futures and Nasdaq futures, after U.S. stock markets were closed in observance of the Martin Luther King holiday. The stock market rally powered higher last week, with the Dow Jones, S&P 500 index and Nasdaq composite all reclaiming their 50-day lines. Microsoft (MSFT), Netflix (NFLX), Adobe (ADBE), Salesforce.com (CRM) and Visa (V) are large-cap stock worth watching. Microsoft stock, Adobe stock, Salesforce stock and Visa stock are all within 5% of proper buy points. Netflix stock, which sold off Friday on mixed results and weak guidance, is well below a current buy point but seems poised to carve a new, lower entry.
Dow Jones Futures Today
Dow Jones futures fell 0.6% vs. fair value. S&P 500 futures retreated 0.6%. Nasdaq 100 futures lost 0.75%. Remember that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular session.
Asian markets were down in Tuesday trading after largely advancing Monday.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 25,814.86.
The projected lower bound is: 23,567.63.
The projected closing price is: 24,691.24.
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 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 89.9243. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 61.45. 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 16 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 152.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 buy 12 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 336.250 at 24,706.350. Volume was 5% above average (neutral) and Bollinger Bands were 36% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24,045.48 24,330.89 24,968.80
Volatility: 9 30 20
Volume: 311,052,096 368,653,152 328,609,056
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 1.1% 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 5 periods.