Dow Jones Industrial Average (.DJI) falls to 3-week low in aftermath of Fed policy update
The Dow Jones Industrial Average was trading solidly lower late-morning Thursday, with the blue-chip benchmark on track to finish at its lowest level since mid April, if the current slide holds. Most recently, the Dow DJIA, -0.46% was off 230 points, or 0.8%, at 26,207, with a finish at that level marking its lowest since April 12 when the benchmark finished at 26,143. Meanwhile, the S&P 500 index SPX, -0.21% was trading 6% lower at 2,905, and the Nasdaq Composite Index COMP, -0.16% was down 0.6% at 7,999.
On Wednesday, Federal Reserve Chairman Jerome Powell at a news conference emphasized a healthier global domestic growth picture, and indicating that neither a rate cut nor a rate hike were in the offing, undercutting the hope held by some investors that a near-term rate reduction was likely.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 26,737.53.
The projected lower bound is: 25,892.18.
The projected closing price is: 26,314.86.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 42.1093. This is not an overbought or oversold reading. The last signal was a sell 6 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 50.42. 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 sell 46 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 -161.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 4 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -122.352 at 26,307.789. Volume was 9% below average (neutral) and Bollinger Bands were 66% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,521.47 26,065.59 25,393.35
Volatility: 7 10 19
Volume: 298,572,512 294,946,944 317,077,184
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 3.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 20 periods.
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