Dow Jones Industrial Average (.DJI) Fell as China Trade Tensions Escalate
The Dow Jones Industrial Average fell 101.78 points, or 0.41%, to close at 24,474.12. The S&P 500 lost 23.10 points, or 0.78%, to end at 2948.51, and the Nasdaq Composite fell 90.90 points, or 0.97%, to close at 9284.88.
China is coming up with a brand new law that would significantly scale back Hong Kong’s autonomy. In response, the Wall Street Journal reported that two U.S. senators decide to introduce a bipartisan bill to sanction Chinese party officials and entities who enforce the new national-security laws in Hong Kong, furthermore as to penalize banks that do business with those entities.
This marks the most recent round of the escalated tensions between the world’s two largest economies on multiple fronts. On Wednesday, the Senate approved a legislation that would need foreign companies to follow U.S. accounting standards , or otherwise certify that they’re not owned by a foreign government. Companies may be prohibited from listing their shares on a U.S. stock market for noncompliance.
Price Performance
Top Movers
Bottom Movers
Shayne Heffernan Trade Idea
“You can’t justify the rally right now from a fundamental perspective.” Shayne Heffernan PhD in Economics
Technical Analysis
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 27,186.16.
The projected lower bound is: 21,798.91.
The projected closing price is: 24,492.54.
Candlesticks
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 24 white candles and 26 black candles for a net of 2 black candles.
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 83.1097. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 55.78. 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 41 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 1 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -101.781 at 24,474.119. Volume was 26% below average (neutral) and Bollinger Bands were 64% narrower than normal.
Open High Low Close Volume 24,564.270 24,718.461 24,370.881 24,474.119 348,838,432
Technical Outlook Short Term: Overbought Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 24,073.11 22,854.06 26,320.21 Volatility: 35 79 46 Volume: 408,277,952 531,450,656 352,395,296
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 7.0% 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 4 periods.
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